Table 15-5 On January 2, 2017, Goldman Corporation Signed an Eight-Year Capital

question 176

Multiple Choice

Table 15-5
On January 2, 2017, Goldman Corporation signed an eight-year capital lease on an office building requiring annual lease payments of $7,500, with the first payment due immediately. Annual lease payments are made each December 31. The present value of the seven future lease payments at 10% interest per year is $36,510.
-Refer to Table 15-5.The entry on December 31,2017,to record amortization on the leased asset using straight-line amortization would include a:

• A) debit to Amortization Expense for $4,564
• B) credit to Leased Asset for $4,564
• C) credit to Accumulated Amortization-Office Building for $5,501
• D) No journal entry is required for amortization on a leased asset.

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Definitions:

Abnormal Psychology

The scientific study of abnormal behavior undertaken to describe, predict, explain, and change abnormal patterns of functioning.

Research Method

Techniques, strategies, and tools used to identify, select, process, and analyze information about a subject.

Independent Variable

The variable in an experiment that is manipulated to determine whether it has an effect on another variable.

Dependent Variable

The variable in an experiment that is expected to change as the independent variable is manipulated.