Phil Company Leased a Machine to Its 100%-Owned Subsidiary, Scout

question 31

Multiple Choice

Phil Company leased a machine to its 100%-owned subsidiary, Scout Company. The direct financing lease required annual lease payments in advance of $2,319 for 5 years. The present value of the minimum lease payments at 8% interest is $10,000.
-Refer to Phil Company. The adjustment of assets and liabilities needed to prepare a consolidated balance sheet is to eliminate the:

• A) asset leased.
• B) asset leased and the obligation under the capital lease.
• C) obligation under the capital lease and the present value of the minimum lease payments.
• D) obligation under the capital lease.

Recognize the different laws and regulations that foreign companies face when operating in the United States.

Comprehend the principles of the World Trade Organization and the significance of most favoured nation status.

Identify the role of tariffs in international trade and their impact on local firms and foreign competition.

Understand the structure and member countries of major trade agreements like NAFTA and the European Union.