An Asset with a Market Value of $100,000 Is Leased

question 195

Multiple Choice

An asset with a market value of $100,000 is leased on 1/1/x0.Five annual lease payments are due each January 1 beginning 1/1/x0.The unguaranteed residual value on 12/31/x4,the last day of the lease term,is estimated at $40,000.The lessor's implicit interest rate is 8%.What is the annual lease payment?

• A) $18,227
• B) $16,877
• C) $23,191
• D) $25,046

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Definitions:

Place of the Occurrence

In medical coding, the specific location where an event, such as an injury or exposure, happened.

Sebaceous Gland

A microscopic exocrine gland in the skin that secretes an oily or waxy matter called sebum, to lubricate and waterproof the skin and hair.

Eccrine Gland

Sweat glands found all over the body that help regulate body temperature by releasing sweat.

Apocrine Gland

A type of gland that is mainly responsible for body scent, found in underarms, genital area, and nipples.