An Asset with a Market Value of $100,000 Is Leased

question 37

Multiple Choice

An asset with a market value of $100,000 is leased on January 1, 2011. Five annual lease payments are due each January 1 beginning January 1, 2011. The lessee guarantees the $40,000 residual value of the asset as of the end of the lease term on December 31, 2015. The lessor's implicit interest rate is 8%.
What is the annual lease payment?

• A) $18,227
• B) $16,877
• C) $23,191
• D) $25,046

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Definitions:

Alveolar Capillary Membrane

The thin barrier in the lungs where gas exchange occurs between the air in the alveoli and the blood in the capillaries.

Diffusion

Movement of molecules from an area of high concentration to one of lower concentration.

Ventilation

Respiratory process by which gases are moved into and out of the lungs.

Electrocardiogram (ECG)

Graphic record of the electrical activity of the myocardium.