On January 1 of the Current Year,Stephens Corporation Leased Machinery

question 353

True/False

On January 1 of the current year,Stephens Corporation leased machinery from Montgomery Company.The machine originally cost Montgomery $250,000.The lease agreement is an operating lease,the terms of which call for five annual payments of 25,000.The first payment is due at the inception of the lease; the other three payments are due on January 1 of subsequent years.What journal entry should Stephens make on January 1 of the current year?
A)

B)

C)

D)

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Definitions:

Discipline

A field of study or branch of knowledge, education, or training; also refers to the practice of training people to obey rules or a code of behavior.

Rational

Based on or in accordance with reason or logic, capable of reasoning or using reason in an orderly cogent fashion.

Difficult

Describes something that is not easy to do, understand, or deal with.

Conduct Disorder

A mental health disorder seen in children and adolescents, characterized by a persistent pattern of behavior that violates societal norms and the rights of others.