Elton Electronics Leases Testing Equipment to Startup Corporation

question 102

Multiple Choice

Elton Electronics leases testing equipment to Startup Corporation. The equipment is not specialized and is delivered on January 1, 2019. The fair value of the equipment is $103,000. The cost of the equipment to Elton is $98,000 and the expected life of the testing equipment is 8 years. Elton incurs initial direct costs of $10,000, which they elect to expense. The lease term for the equipment is 8 years, with the first payment due upon delivery, and seven subsequent annual payments beginning on December 31, 2019 and ending on December 31, 2025. Elton's implicit rate is 8% and they expect that collection of the $13,000 lease payments is probable. What is the principal balance in the Net Investment in Lease - Sale Type account at the commencement of the lease?

• A) $80,683
• B) $67,683
• C) $98,000
• D) $60,098

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A method of suspect identification that seeks to predict an unknown criminal’s psychological, emotional, and personality characteristics based on the individual's pattern of criminal behavior and on research into the psychological characteristics of people who have committed similar crimes.

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