Nanotech Inc

question 72

Multiple Choice

Nanotech Inc.leased a new machine having an expected useful life of 20 years from Union Co.Terms of the noncancelable 15-year lease were that Nanotech would gain title to the property upon payment of a sum equal to the fair market value of the machine at the termination of the lease.Nanotech accounted for the lease as a capital lease and recorded an asset and a liability in the financial records.The asset recorded under this lease should properly be amortized over

• A) 5 years (the period of actual ownership).
• B) 15 years (75 percent of the 20-year asset life).
• C) 20 years (the total asset life).
• D) 15 years (the term of the lease).

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Definitions:

Beaks

The hard, external, projecting jaws of birds, made of keratin, that are adapted to their feeding habits.

Vertically Transmitted Endosymbionts

Microorganisms that are passed from parent organisms to their offspring through the germline, often providing mutual benefits.

Genomes

The complete set of genetic material in an organism, including all of its genes and noncoding DNA sequences.

Parasite Pressure

The influence or stress exerted by parasites on their hosts, potentially affecting host behavior, survival, and population dynamics.