Use the Following Information for Questions 62 and 63

question 61

Multiple Choice

Use the following information for questions 62 and 63.
On January 1, 2014, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Sauder to make annual payments of $150,000 at the beginning of each year for five years with the title passing to Sauder at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sauder uses the straight-line method of depreciation for all of its fixed assets. Sauder accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $625,479 at an effective interest rate of 10%.
-In 2014, Sauder should record interest expense of

• A) $47,548.
• B) $87,453.
• C) $62,547.
• D) $102,453.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Stereotyping

The oversimplified and generalized belief about a group of people that ignores individual differences and complexities.

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A phase in various models, such as group development or change processes, where established processes and structures are sustained and kept functional.

James Dyson

British inventor and entrepreneur best known for founding Dyson Ltd, a company that designs and manufactures household appliances such as vacuum cleaners, air purifiers, and hair dryers.