Lessee ABC INC

question 62

Multiple Choice

Lessee ABC INC.leased from Lessor QRS a machine that cost $35,000, which was properly classified as a finance lease by both parties.Assume the lessor used a 12 percent implicit interest rate and that the lessee was informed of that rate.The lease did not include a bargain purchase option and the estimated residual value at termination of the lease was zero.Equal semi-annual lease payments are to be made at the start of each such period, including one on the date the lease was signed.The amount of each semi-annual payment, assuming a five-year lease term, would be:

• A)$9,709
• B)$2,074
• C)$2,916
• D)$4,755
• E)$4,486

---

Definitions:

Myth

A traditional story, especially one concerning the early history of a people or explaining a natural or social phenomenon, often involving supernatural beings or events.

New HIV Infections

Recently diagnosed cases of the Human Immunodeficiency Virus, which attacks the immune system and can lead to Acquired Immunodeficiency Syndrome (AIDS) if not treated.

WHO

The World Health Organization, a specialized agency of the United Nations responsible for international public health.

UNAIDS

The Joint United Nations Programme on HIV and AIDS, an organization that leads and inspires the world in achieving universal access to HIV prevention, treatment, care, and support.