A generalization made about an individual or group that is not based on reality is called a ________.
A. seamless service.
B. win-win situation.
C. stereotype.
D. disparate treatment.
Answer: C
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Exhibit 20-3 On January 1, 2016, Quinn Company enters into a five-year sales-type lease with Andy Company. The lease requires Andy to make five annual payments at the beginning of the year, with the first payment due January 1, 2016. The lease includes a bargain purchase price of $10,000. Quinn requires a 10% rate of return. The cost to Quinn of the property is $100,000, and it has a fair value
of $150,000. Present value factors for a 10% interest rate are as follows: Present value of $1 for n = 1 0.909091 Present value of $1 for n = 5 0.620921 Present value of an ordinary annuity for n = 5 3.790787 Present value of an annuity due for n = 5 4.169865 ? Refer to Exhibit 20-3. What is the amount of sales revenue to be recognized by Quinn on January 1, 2016,? A) $143,791 B) $150,000 C) $50,000 D) $0
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