LAS Owns a Building in North Bay

question 162

Multiple Choice

LAS owns a building in North Bay.LAS enters into an agreement with BH as follows: LAS sells the building to BH on 1/1/2014 for $1,900,000 (the building's fair value on that date was $1,800,000) and immediately leases it back for $500,000 per year for 10 years.The remaining life of the building is estimated at 20 years.The historical cost of the building was $9,000,000 and accumulated amortization amounted to $7,000,000.Assuming that ASPE applies, and that the lease does not qualify as a finance lease, the net effect of this transaction on the statement of comprehensive income in the year of sale would be:

• A)a reduction to net income of $495,000.
• B)a reduction to net income of $490,000.
• C)a reduction to net income of $505,000.
• D)a reduction to net income of $510,000.

Comprehend the process of photomorphogenesis and its significance.

Explain the concept of transport in plants, focusing on hormone transport.

Describe the mechanisms of plant response to gravity and light.

Understand how plant hormones interact to regulate growth and development.

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Definitions:

Seismic Gaps

Regions along active faults where no recent earthquakes have occurred, but where strong earthquakes are thought to be likely to occur in the future.

San Andreas Fault

A major geological fault in California known for producing significant earthquakes.

Cross Sections

Representations or slices through a three-dimensional object, often used to illustrate the internal structure of geological formations or biological specimens.

Future Earthquakes

Predictions or assessments regarding the occurrence, magnitude, and impact of earthquakes that have not yet happened.