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:

Actinopods

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Amoebozoa

A group of amoeboid protozoa that move and ingest food with pseudopodia, comprising various free-living and parasitic species.

Plasmodial Slime Molds

Eukaryotic organisms that exist as a single mass of cytoplasm without cell walls during part of their life cycle, feeding on microorganisms in decaying plant material.

Opisthokont

A classification category that includes both fungi and animals, characterized by posterior flagella on swimming cells.