Waters Company Entered into a Direct-Financing Lease with Toll Company

question 57

Multiple Choice

Waters Company entered into a direct-financing lease with Toll Company for the use of an asset which cost Waters $240,000. The lease agreement contained a bargain purchase option effective immediately after the fifth rental, which provided that Toll could purchase the asset at that time. The estimated life of the asset was 10 years with an estimated residual value of $400. Assuming that Toll uses straight-line depreciation, Toll's annual depreciation expense would be

• A) $22,200.
• B) $23,960.
• C) $44,400.
• D) $48,000.

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The practice of demonstrating politeness, respect, and consideration for others during phone conversations.

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A presentation or proposal aimed at persuading or informing an audience, often used in sales or marketing contexts.

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The modulation of the voice to express meaning, emotion, or emphasis in spoken language.