On January 1, 2016, Stephen Corp

question 83

Multiple Choice

On January 1, 2016, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follows round to the nearest whole dollar) :
On January 1, 2016, what amount should Stephen record as a debit to Lease Receivable?

• A) $67,100
• B) $70,814
• C) $100,000
• D) $108,000

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Definitions:

Beta (β)

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Null Hypothesis

A hypothesis that states there is no effect or no difference, serving as the default assumption in hypothesis testing until evidence suggests otherwise.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis and is usually what the researcher aims to prove.

Average Number

This term often refers to the arithmetic mean, which is calculated by summing all numbers in a set and dividing by the count of those numbers.