Wayne Technical Corporation Signed a Lease for Equipment,which Requires Lease
Wayne Technical Corporation signed a lease for equipment,which requires lease payments of $50,000 per year for four years.The equipment has an estimated useful life of 7 years.This lease would be a capital lease if:
A)the equipment is leased for 4 years.
B)the present value of the lease payments equals $150,000 and the fair value of the equipment is $200,000.
C)title to the equipment does not transfer to the lessee at the end of the lease term.
D)the lease agreement allows Wayne to purchase the equipment for $5 at the end of the lease.
Which type of lease will NOT increase a company's assets or long-term liabilities?
A)An operating lease.
B)A capital lease.
C)A lease that contains a bargain purchase option.
D)A lease that transfers title of the leased asset to the lessee at the end of the lease term.
To determine whether a pension plan is over-funded or under-funded,a company must compare the:
A)fair market value of the pension plan assets to the projected benefit obligation.
B)cost of the pension plan assets to the accumulated benefit obligation.
C)accumulated benefit obligation to the plan's anticipated obligations.
D)fair market value of the pension plan assets to the accumulated benefit obligation.
A company has pension plan assets with a fair value of $9 million.The accumulated benefit obligation for pensions is $10 million and the projected benefit obligation for pensions is $15 million.What pension liability is reported on the balance sheet?