11.The balance in the capital lease (liability) account that will appear on the balance sheet of Kachelmeyer on 1 January 2005, after making the first lease payment will be: A) $137,552. B) $151,307. C) $36,286. D) $115,021.
12.Classifying a lease as an operating lease for a lessee, as opposed to a capital lease, will result in:
| Current Ratio | Debt/Equity Ratio | Asset Turnover Ratio |
A) Higher Lower Higher B) Higher Lower Lower C) Lower Higher Lower D) Lower Lower Higher
13.A 5-year noncancellable lease signed on 31 December 2006 requires annual payments of $47,963.24, beginning on 31 December 2006. The present value of the lease payments discounted at the appropriate interest rate of 10% is $200,000. Assuming zero residual value and that the first lease payment is made on 31 Decemeber 2006, the reported lease expense for the year ended 31 December 2007 is: A) $60,000. B) $70,000. C) $55,204. D) $87,204.
14.What amount should the firm report as a lease liability as of 31 December 2007? A) $104,074. B) $200,000. C) $119,277. D) $152,037.
15.Management of Caldor Kites, Inc., is considering leasing a new asset. Information on the asset and the terms of the lease are as follows: §
The asset has a fair market value of $1.3 million, an estimated useful life of 7 years, and no salvage value. §
Company incremental borrowing rate is 13.0%. §
Lease term of 5 years with lease payments of $24,700 due at the beginning of each month. §
Implicit lease rate is 10.0%. §
The lease does not contain a bargain purchase option and there is no title transfer at the end of the lease. If management leases the asset (Note: Carry calculations to at least 3 decimal places): A) the current ratio is unaffected (all else equal). B) in the first month, cash flow from operations will decrease by approximately $9,770. C) the lease period is greater than 75% of the asset's useful life. D) in the first month, cash flow from operations will decrease by approximately $24,700. | 
发表于 2008-4-22 10:15
| 