On January 2, 2018, Nori Mining Co

question 187

Multiple Choice

On January 2, 2018, Nori Mining Co. (lessee) entered into a 5-year lease for drilling equipment. Nori accounted for the acquisition as a finance lease for $240,000, which includes a $10,000 purchase option at the end of the lease. Nori is reasonably certain to exercise the purchase option. Nori estimates that the equipment's fair value will be $20,000 at the end of its 8-year life. For the year ended December 31, 2018, what amount should Nori recognize as amortization expense on the right-of-use asset?

• A) $27,500
• B) $30,000
• C) $48,000
• D) $46,000

Recognize the representation and significance of data in computing.

Understand the concept and use of bits in data representation.

Grasp the importance of processor speeds measured in hertz.

Identify the limitations of data representation in binary form.

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Definitions:

Liter

A metric unit of volume equal to 1,000 milliliters or about 0.264 gallons.

Kilograms

A unit of mass in the metric system equal to 1,000 grams.

Grams

A mass measurement unit representing 0.001 of a kilogram.

Pounds

A unit of weight commonly used in the United States, equal to 0.453592 kilograms.