NOTE: the Following Multiple Choice Questions Require Present Value Information

question 49

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:
Under which of the following conditions does the equipment lease qualify for capital lease accounting?

• A) The lease does not contain a bargain purchase option.
• B) The lease term is equal to or greater than 75% of the asset's economic life.
• C) The lease term is equal to or greater than 90% of the asset's economic life.
• D) The lease does not transfer ownership to the lessee at the end of the lease term.

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Definitions:

Superordinate Goals

Objectives that require two or more groups to work together, thereby reducing competition and increasing cooperation.

Intergroup Conflict

Tension or conflict that arises between different groups, often rooted in competition, prejudice, or differing values.

Shared Threat

A danger or threat that affects multiple individuals or groups, leading to a potential for collective response or action.

Conciliation

Process whereby groups make cooperative gestures to one another in the hope of avoiding an escalation of conflict.