Which of the following statements regarding the calculation of the lessee's depreciation expense for a capital lease is true?
A) The bargain purchase option price is deducted from the original cost capitalized, and the difference is allocated over the estimated economic life of the asset.
B) The guaranteed residual value is deducted from the original cost capitalized, and the difference is allocated over the estimated economic life of the asset.
C) The unguaranteed residual value is deducted from the original cost capitalized, and the difference is allocated over the term of the lease.
D) The guaranteed residual value is deducted from the original cost capitalized, and the difference is allocated over the term of the lease.
D
You might also like to view...
Unlike public charities, private foundations are not permitted to engage in ______.
A. lobbying B. fund-raising C. providing direct services D. international exchange programs
With ______ error the rater compares and contrasts performance between two employees, rather than using absolute measures of performance to assess each employee.
A. attribution B. contrast C. recency D. similarity
An employee injured within the scope of employment can recover against both the employer in a worker's compensation action and against a third-party for a double recovery
a. True b. False
A time study analyst is attempting to determine the standard time for a work element. She or he observes a worker performing the work element at a lower-than-average pace
How will this fact be reflected in the time standard that is eventually created? A) The frequency of the work element per cycle will be increased. B) The proportion of allowance time will be increased above 1.0. C) The performance rating factor will be set less than 1.0. D) The normal time for the work element will be increased.