For a Capital Lease,an Amount Equal to the Present Value

question 55

Multiple Choice

For a capital lease,an amount equal to the present value of the minimum lease payments should be recorded by the lessee as a(n) :

• A)Asset and a liability.
• B)Asset and a different amount should be recorded as a liability.
• C)Liability and a different amount should be recorded as an asset.
• D)Expense.

---

Definitions:

Tariff

A tax imposed by a government on imported goods to protect domestic industries or raise revenue.

Domestic Market

The market within a country where goods and services are traded domestically.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, including quotas, tariffs, and embargoes.

Semiconductor Industry

The semiconductor industry includes companies involved in the design, manufacture, and supply of semiconductors, which are essential components for electronic devices.