Porter Corporation NOTE: the Following Multiple Choice Questions Require Present

question 13

Multiple Choice

Porter Corporation NOTE: The following multiple choice questions require present value information.
On January 1,2012,Porter Corporation signed a five-year noncancelable lease for certain machinery.The terms of the lease called for:
At January 1,2012,Porter should record an asset and liability with respect to the equipment lease equal to

• A) $258,726
• B) $239,562
• C) $275,000
• D) $0

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Definitions:

Exceeding Authority

Acting beyond or exceeding the powers or rights officially granted to an individual or body.

Negotiator

A person or entity that engages in discussions with one or more parties to reach a mutually acceptable agreement or resolution.

Caution

The practice of being careful, or avoiding potential problems or dangers.

Negotiating Team

A group of individuals assembled to represent a party during bargaining or negotiation processes.