LAS Owns a Building in North Bay

question 169

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

Recognize the impact of organizational changes on individual behaviors.

Understand the importance of self-monitoring and self-awareness in personal and professional settings.

Grasp the foundational aspects of culture and its transmission.

Understand Hofstede’s framework of national culture and its dimensions.

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Definitions:

Stable

Refers to a condition or state that is resistant to change, often used to describe equilibrium in systems or psychological conditions.

Global Factor

An overarching element or influence that affects multiple aspects or areas simultaneously.

Severe Depression

A significant mental health condition characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly impairing daily functioning.

Internal

Refers to something situated on the inside or occurring within an entity or organization.