26.Which of the following statements regarding the effect of a capital lease on the statement of cash flows is FALSE ? A) The rental expense serves to reduce the cash flow for financing because it is an investment expense. B) The interest expense portion of the lease payments reduces cash flow from operations. C) The change in the capital lease liability on the balance sheet is a cash flow from financing. D) The effect on the cash flow components is different for capital leases and operating leases, but the total effect on cash flow is the same for these two types of leases.
27.Which of the following statements about leases is TRUE? A) When a lease is capitalized, the firm will initially experience lower net income and later experience higher net income than it would had the lease been expensed. B) If the present value of the minimum lease payments equals or exceeds 90% of the fair market value of the asset the lease should be treated as an operating lease. C) If a lease is capitalized rather than expensed the firm's current ratio will increase. D) Lease capitalization decreases operating cash flows in the early years of the lease compared to if the lease had been expensed.
28.Dale Peterson plans to lease a computer from Gray Computing Services. It will be a 10-year lease with annual payments of $2,400 plus a guarantee of a residual value of $4,000 at the end of the lease. The asset has a 12 year useful life. The present value of the lease discounted at the appropriate interest rate of 9 percent is $17,000. The company uses the straight-line depreciation method. In the first year, the reported lease expense is: A) $3,230. B) $1,530. C) $2,830. D) $2,400.
29.Assume the following capital lease: §
Present value (PV) of lease payments at 10 percent is $25,000. §
The leased asset is depreciated straight line over 5 years. §
The lease payment is $6,000. §
The first payment of $6,000 is to be paid at the end of the year. On a before tax basis, the income reported under capital lease compared with that reported under an operating lease for the first year will be: A) $1,500. B) -$2,500. C) $2,500. D) -$1,500.
30.Assume the following capital lease: §
Present value (PV) of lease payments at 10 percent is $20,000. §
The leased asset is depreciated straight line over 5 years. §
The lease payment is $5,000. §
The first payment of $5,000 is to be paid at the end of the year. On a before tax basis, the income reported under a capital lease compared with that reported under an operating lease for the first year will be: A) -$1,000. B) $1,000. C) -$2,000. D) $2,000. | 
发表于 2008-4-22 10:29
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