1. At the inception of a finance lease, the expected guaranteed residual value exceeds the guaranteed residual, the guaranteed residual value should be

• A. included as part of minimum lease payments only to the extent the guaranteed residual value is expected to exceed the estimated residual value
• B. included as part of the minimum lease payments at future value
• C. included as part of the minimum lease payments at present value
• D. excluded from minimum lease payments

2. When a company adopts a pension plan, prior service costs should be charged to

• A. Operations of current periods
• B. Operations of prior periods
• C. Retained earnings
• D. Operations of current and future periods