RST Entered into a Direct Financing Lease with ZAB,which Called

question 24

Multiple Choice

RST entered into a direct financing lease with ZAB,which called for seven annual rentals of $3,500 (interest rate 12 percent) to be paid at the end of each year.The lease also contained a bargain purchase option allowing ZAB to purchase the asset for $2,500 after making the seventh annual rental payment.The cost of the asset must have been:

• A) $17,105
• B) $18,473
• C) $25,631
• D) $27,000

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Definitions:

Pubic Lice

Pubic lice are parasitic insects that infest the human genital area, causing itching and discomfort; they are usually transmitted through sexual contact.

Intense Itching

Severe discomfort that leads to an urgent need to scratch the affected area of the skin.

Pelvic Inflammatory Disease

is an infection of the female reproductive organs, often caused by sexually transmitted diseases.

Female Infertility

The inability of a woman to conceive after one year of regular, unprotected sexual intercourse, due to various possible reasons.