Use the Following Information to Answer Question

question 55

Multiple Choice

Use the following information to answer question
Canin Cranes Co. leased an asset under the following terms:
-Assume Canin Cranes decides to account for the lease as a finance lease. The lessee's entry to record the leased asset and lease acquired would include a

• A) debit to asset under lease for $35,500.
• B) debit to asset under lease for $40,000.
• C) credit to obligation under finance lease for $7,500.
• D) credit to lease payable for $7,500.

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Definitions:

Open-Economy Macroeconomic

A branch of macroeconomics that studies economies in which international trade and financial transactions play a significant role.

Loanable Funds

The funds available for borrowing in the financial markets, involving the lending and borrowing between savers and borrowers, which determines the equilibrium interest rate.

Domestic Investment

The total amount of resources invested in the production of goods and services within a country’s borders.

Net Capital Outflow

The purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.