Pepper, Inc -At the End of Year 1,Pepper Will Make a Payment

question 30

Multiple Choice

Pepper, Inc. agrees to lease equipment from the Blue Corporation for 10 years at $25,000 at the end of each year. The equipment has a fair value of $175,000 and an estimated useful life of 10 years. The lease includes a guaranteed residual value of $10,000. In addition to the lease payments, Pepper will pay $5,000 per year for a maintenance agreement. Pepper can finance this lease with its bank at a 12% rate. The lessor's implicit lease rate, known to the lessee, is 10%.
Present value interest factors are:
$$\begin{array} { l c c } & \underline { \mathbf { 1 0 \% } } & \underline { \mathbf { 1 2 \% } } \\\text { PVIF \$1 } 10 \text { periods } & 0.38554 & 0.32197 \\\text { PVIF Annuity } 10 \text { periods } & 6.14457 & 5.65022\end{array}$$
-At the end of Year 1,Pepper will make a payment of $30,000.Which one of the following entries will properly record this payment? (Round all calculations to the nearest whole dollar amount.)

• A) DR Obligation under capital lease\(~~~~~~~~\)30,000
• \(~~~~~~~~\)CR Cash\(~~~~~~~~\)\(~~~~~~~~\)\(~~~~~~~~\)\(~~~~~~~~\)\(~~~~~~~~\)\(~~~~~~~~\)30,000
• B) \(\begin{array} { l l r r }
• \text { DR } & \text { Obligation under capital lease } & 14,253 & \\
• \text { DR } & \text { Interest expense } & 15,747 & \\
• & \text { CR Cash } & & 30,000
• \end{array}\)
• C) \(\begin{array} { l l r r }
• \text { DR } & \text { Obligationunder capital lease } & 9,253 & \\
• \text { DR } & \text { Maintenance expense } & 5,000 & \\
• \text { DR } & \text { Interest expense } & 15,747 & \\
• & \text { CR Cash } & & 30,000
• \end{array}\)
• D) \(\begin{array} { l l r l }
• \text { DR } & \text { Obligation under capital lease } & 25,000 & \\
• \text { DR } & \text { Maintenance expense } & 5,000 & \\
• & \text { CR Cash } & & 30,000
• \end{array}\)

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Understand the basic differentiation between innate and adaptive immunity.

Identify the specific roles and characteristics of various immune cells (B cells, T cells, neutrophils, eosinophils, macrophages).

Recognize the concept of immunity memory and its significance in vaccine development and immune response.

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