Brooke Distributing Leased a Machine for a Period of Eight

question 52

Multiple Choice

Brooke Distributing leased a machine for a period of eight years,contracting to pay $200,000 at the beginning of the lease term on December 31,2014,and $200,000 annually on December 31 for each of the next seven years.The present value of the eight rent payments over the lease term,appropriately discounted at 10 percent,is $1,174,000.On its December 31,2015,balance sheet,Brooke should report a liability under capital lease of

• A) $871,400.
• B) $876,600.
• C) $974,000.
• D) $1,091,400.

---

Definitions:

Hospice Care

Specialized care designed to provide support to individuals in the final phase of a terminal illness, focusing on comfort and quality of life rather than cure.

Kübler-Ross's Stages

Refers to the five stages of grief identified by Elisabeth Kübler-Ross, which include denial, anger, bargaining, depression, and acceptance.

Incompetent Doctor

describes a medical professional lacking the necessary skills, knowledge, or judgement to provide adequate care.

Modern Hospice

A concept of care designed to provide comfort and support to patients and their families during the final stages of a terminal illness, focusing on quality of life rather than curing the illness.