An Asset with a Market Value of $100,000 Is Leased

question 33

Multiple Choice

An asset with a market value of $100,000 is leased on January 1,2014.Five annual lease payments are due each January 1 beginning January 1,2014.The lessee guarantees the $40,000 residual value of the asset as of the end of the lease term on December 31,2018.The lessor's implicit interest rate is 8%. What is the annual lease payment?

• A) $18,227
• B) $16,877
• C) $23,191
• D) $25,046

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Definitions:

Weekday Job Sharing

An employment arrangement where two or more individuals share the responsibilities of a full-time position during the workweek.

Job Rotation

A human resources strategy where employees are moved between various jobs at an organization to gain experience and skills across different roles.

Increasing Activities

Engaging more intensively or extensively in actions or tasks to achieve specific goals or outcomes.

Scientific Management

A management theory developed by Frederick Taylor that emphasizes efficiency and productivity through the scientific study of tasks and worker behavior.