1) Debentures involve collateral other than real estate.

True

False

2) When a company extinguishes debt, an accounting gain or loss may be generated.

True

False

3) Under ASC 842, we now call a lease thats capitalized a finance lease rather than a capital lease.

True

False

4) A lessor owns the asset being leased.

True

False

5) For most leases, both an asset and a liability are initially recorded at the sum of the (undiscounted) value of all minimum lease payments.

True

False

6) A bargain purchase option should be included in the minimum lease payments when valuing a lease.

True

False

7) Executory costs should be included in the minimum lease payments when valuing a lease.

True

False