NOTE: the Following Multiple Choice Questions Require Present Value Information

question 27

Multiple Choice

NOTE: The following multiple choice questions require present value information. On January 1, 2006, Price Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease called for:
What accounting method should Price use to account for the equipment lease?

• A) Operating Lease method
• B) Capital Lease method
• C) Equipment Lease method
• D) Lessee Accounting method