Phil Company Leased a Machine to Its 100%-Owned Subsidiary, Scout

question 50

Multiple Choice

Phil Company leased a machine to its 100%-owned subsidiary, Scout Company.The direct financing lease required annual lease payments in advance of $2,319 for 5 years.The present value of the minimum lease payments at 8% interest is $10,000.The adjustment needed to arrive at consolidated net income for the first year after the lease is ____.

• A)​$0
• B)​$800
• C)​$2,319
• D)​$10,000

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol despite its negative effects on one's life.

Illogical Thinking

According to cognitive theories, illogical ways of thinking that may lead to self-defeating conclusions and psychological problems.

Cognition-focused Therapists

Professionals who concentrate on modifying distorted thinking and dysfunctional belief systems as a pathway to changing behavior and emotional states.

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The practice of talking to oneself, either aloud or silently, which can influence one's emotions, behavior, and overall mental health, often reflecting one's inner thoughts and beliefs.