ABC INCEntered into a Sales-Type Lease to Lease JKL an Asset

question 72

Multiple Choice

ABC INC.entered into a sales-type lease to lease JKL an asset that cost ABC INC.$120,000.The lease agreement requires five annual year-end rentals of $40,000 each.ABC INC.used a 15 percent interest rate to compute the rentals.The dealer's profit (or loss) that ABC INC.recognized was:

• A) $14,086 loss.
• B) $14,086 gain.
• C) $18,000 gain.
• D) $80,000 gain.

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Definitions:

Pituitary Gland

The endocrine gland located in the brain that releases hormones that activate other endocrine glands as well as growth hormone; often called the “master gland.”

General Adaptation Syndrome (GAS)

A theoretical model describing the body's short-term and long-term reactions to stress.

Selye's GAS

General Adaptation Syndrome, a theory introduced by Hans Selye, describing the body's short-term and long-term reactions to stress.

Historical Racism

Discriminatory practices and beliefs rooted in history that have systematically oppressed individuals or groups based on race.