Ginnie, Inc.entered into a five-year capital lease on December 31, 2010.This lease requires five minimum annual lease payments due on December 31 of each year.The first minimum payment was paid on December 31, 2010.This payment included which of the following? $\begin{array}{ll}
&\text { Interest Expense}&\text { Lease Liability}\
\text {I.}&\text { No } & \text { Yes } \
\text {II.}&\text { Yes } & \text { No } \
\text {III.}&\text { Yes } & \text { Yes } \
\text {IV.}&\text { No } & \text { No }
\end{array}$
A)I
B)II
C)III
D)IV

Question

Ginnie, Inc.entered into a five-year capital lease on December 31, 2010.This lease requires five minimum annual lease payments due on December 31 of each year.The first minimum payment was paid on December 31, 2010.This payment included which of the following? $\begin{array}{ll}
&\text { Interest Expense}&\text {  Lease Liability}\
\text {I.}&\text { No } & \text { Yes } \
\text {II.}&\text { Yes } & \text { No } \
\text {III.}&\text { Yes } & \text { Yes } \
\text {IV.}&\text { No } & \text { No }
\end{array}$
A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

The question does not provide information on the specifics of the lease agreement or the minimum lease payments, so it is difficult to accurately determine which of the options are included in the first payment. However, as the first payment was made on December 31, 2010, it is likely that it included at least the first minimum annual lease payment due on that date, which would be Option I. Options II, III, and IV are not necessarily included in the first payment and may be spread out over the remaining four years of the lease.

Ginnie, Inc A)I B)II C)III D)IV

Ginnie, Inc A)I
B)II
C)III
D)IV