On January 1, 2014, ABC INC

question 212

Multiple Choice

On January 1, 2014, ABC INC.leased a machine to MNO.The lease was for a 10-year period, which approximated the useful life of the machine.ABC INC.purchased the machine for $120,000 and expects to earn a 10 percent return on its investment, based upon an annual rental of $17,754 payable in advance each January 1st.Assuming that the lease was a direct financing lease, what should be the interest entry on ABC INC.'s books on December 31, 2014?

• A)Please see the following table:
• B)Please see the following table:
• C)Please see the following table:
• D)Please see the following table:

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Definitions:

Religious Beliefs

Systems of faith and worship that generally involve belief in a divine or higher power and are characterized by specific rituals, practices, and moral codes.

Poverty-Stricken Area

A geographic region where a significant portion of the population lives below the poverty line, facing economic hardship and limited access to resources.

Numerous Contexts

Various or multiple settings, situations, or environments in which something can occur or be applied.

Strictly Positive

In mathematics, referring to a quantity greater than zero.