On January 1, 2010, Remy Corp

question 19

Multiple Choice

On January 1, 2010, Remy Corp., a lessee, signed a five-year capital lease for new equipment.The lease requires annual payments of $8, 000.The first payment is due on December 31, 2010.Remy guaranteed a residual value of $2, 000.On December 31, 2014, Remy returned the asset to the lessor, and the asset was appraised at a value of $1, 500.Remy should record which of the following on December 31, 2014?

• A)a $1, 500 credit to leased equipment
• B)a $ 500 debit to a loss account
• C)a $ 500 debit to cash
• D)a $1, 500 credit to cash

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Definitions:

Communist Party of China

The founding and ruling political party of the People's Republic of China, overseeing the country's communist government and policies.

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Australian Labor Relations

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