1. If the lease transfers ownership of the property to the lessee by the end of the lease term, this would not cause a lease to be declared a capital lease for accounting purposes. False 2. An old machine with a book value of $30,000 was traded in on a new similar machine. Its fair value is $100,000. The new machine has a book value of $80,000 and a fair market value of $120,000. The cost of the new machine will be $80,000. True False 3. If the contract term for the licensing arrangement provides access to the right of access intellectual property, the revenue is recognized at a point in time. True False 4. Economic Value Added (EVA) is the difference between a product's input cost and final sales price. This figure is dependent up on the firm's earnings process. True False