Shuttle Master Airlines Has Leased an Aircraft from Streamline Aircraft

question 96

Multiple Choice

Shuttle Master Airlines has leased an aircraft from Streamline Aircraft Company.The annual payments are $1,000,000,and the life of the lease is 18 years.It is estimated that the useful life of the aircraft is 20 years.How would Shuttle Master Airlines record the acquisition of the aircraft? The effective rate of interest is 9%.

• A)The company would not record the aircraft as an asset but would record rent expense of $1,000,000 per year for 18 years.
• B)The company would not record the aircraft as an asset but would record rent expense of $900,000 per year for 20 years.
• C)The aircraft would be recorded as an asset with a cost of $8,756,000.
• D)The aircraft would be recorded as an asset with a cost of $9,129,000.

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Immunizations

The process of making an individual immune or resistant to an infectious disease, typically by the administration of a vaccine.

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Activities and policies aimed at enhancing the health and well-being of individuals and communities.

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The federal legislation that sets the principles for publicly funded health care insurance in Canada.

Temporarily Absent

A situation where an individual or object is not present at a given location or in a specific situation for a short period.