Wayne Technical Corporation Signed a Lease for $150,000 for Equipment

question 23

Multiple Choice

Wayne Technical Corporation signed a lease for $150,000 for equipment. The equipment has an estimated useful life of 7 years. This lease would be considered to be a capital lease if:

• A) the equipment is leased for 4 years.
• B) the present value of the lease payments equals $40,000.
• C) title to the equipment transfers to Wayne at the end of the lease term.
• D) the lease agreement allows Wayne to purchase the truck for $75,000 at the end of the lease.

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Definitions:

Stepwise Mechanism

A reaction mechanism that occurs through multiple sequential steps, with intermediates formed along the reaction pathway.

Resonance Structures

Different Lewis structures that represent the same molecule, illustrating the delocalization of electrons within the molecule.

Intermediate

A temporary species formed during the conversion of reactants into products in a chemical reaction.

NaOH

Sodium hydroxide, a highly caustic base and alkali that is used in several industries, commonly known as lye.