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:
At January 1, 2006 Price should record an asset and liability with respect to the equipment lease equal to
A) $258,726
B) $239,562
C) $275,000
D) $0

Question

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:
 At January 1, 2006 Price should record an asset and liability with respect to the equipment lease equal to
A) $258,726 
B) $239,562 
C) $275,000 
D) $0

Quizplus · Accepted Answer

The Answer of 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:
 At January 1, 2006 Price should record an asset and liability with respect to the equipment lease equal to
A) $258,726 
B) $239,562 
C) $275,000 
D) $0

NOTE: the Following Multiple Choice Questions Require Present Value Information