Use the Following Information for Questions 65 and 66

question 12

Multiple Choice

Use the following information for questions 65 and 66.
On January 1, 2014, Ogleby Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Ogleby to make annual payments of $90,000 at the beginning of each year for five years with title passing to Ogleby at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Ogleby uses the straight-line method of depreciation for all of its fixed assets. Ogleby accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $375,289 at an effective interest rate of 10%.
-With respect to this capitalized lease, for 2014 Ogleby should record

• A) rent expense of $90,000.
• B) interest expense of $28,529 and depreciation expense of $75,058.
• C) interest expense of $28,529 and depreciation expense of $53,613.
• D) interest expense of $45,000 and depreciation expense of $90,978.

Recognize the significance and procedure of obtaining rank and file approval for collective bargaining agreements.

Understand the legal framework and differences in bargaining practices between the public and private sectors.

Grasp the role of politics and legal regulations in shaping the bargaining environment of the public sector.

Understand the key components and requirements of the bargaining process between employers and unions.

---

Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in cost per unit of output decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where production costs per unit increase as an operation scales up, typically due to inefficiencies or increased complexities.

Long-Run

The long-run refers to a period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short-Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects and adjustments.