Use the Following Information for Questions

question 89

Multiple Choice

Use the following information for Questions
Yueve's Company is negotiating leases for three store locations.Yueve's incremental borrowing rate is 12 percent and the lessor's implicit rate is unknown (it is impracticable to determine) .
Each store will have a useful economic life of 30 years.Lease payments will be made at the end of each year.Based on the data below properly classify each of the leases as an operating lease or a finance lease.The purchase price for each property is listed as an alternative to leasing.
-On December 1, 2016, Goetz Corporation leased office space for 10 years at a monthly rental of $90,000.On that date Perez paid the landlord the following amounts: The entire amount of $765,000 was charged to rent expense in 2016.What amount should Goetz have charged to expense for the year ended December 31, 2016?

• A)$90,000
• B)$94,125
• C)$184,125
• D)$495,000

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Definitions:

Subtractive Color Mixing

A process by which colors are created by absorbing or filtering out parts of the light spectrum, as seen in mixing pigments in paints.

Blending

The cognitive process of combining two or more distinct entities or ideas into a new, unified concept.

Trichromatic Color Mixing

A theory of color vision that proposes the eye has three types of receptors, each sensitive to red, green, or blue light, and that all colors are perceived through the combination of these receptors' activities.

Opponent-process Theory

A psychological and neurological model that explains how the perception of one color can affect the perception of another, leading to contrasting aftereffects.