15. A lessee with a finance lease should amortize the recognized asset over the:

A. Asset's remaining economic life

B. Term of the lease

C. Life of the asset or term of the lease, whichever is shorter

D. Life of the asset or term of he lease, whichever is longer.

16. The amount to be recorded as the cost of an asset under a five year lease classified as an operating lease is equal to:

A. Zero

B. Present value of the fixed payments required by the lease plus the present value of any guaranteed residual value.

C. Present Value of the minimum lease payment plus the present value of any unguaranteed residual value

D. Carrying Value of the asset on the lessor's books.

17. The lease term includes:

A. The cancellable portion of the lease term.

B. Any additional periods covered by a renewal option

C. Any additional periods covered by a renewal option the lessee is reasonably certain to exercise.

D. Both B&C

18. A guarantee of the residual value of a leased asset by a third party could cause the lessor to:

A. Classify the lease as a sales-type lease

B. Classify the lease as a direct financing lease

C. Classify the lease as an operating lease

D. Has no affect on the lease classification

19. Company A purchased 3,000, $1,000 bonds issued by Company B as a long-term investment. The bonds were purchased at par and Company A elected the fair value option for 1,000 of the bonds. At year-end, the fair value of the bonds was $3,240,000. What should Company A report in its income statement related to this investment?

A. Nothing, fair value option must be applied to all of the investment or none.

B. $240,000 unrealized gain

C. $160,000 unrealized gain

D. $80,000 unrealized gain

22. A lessor has a lease that qualifies as a sales-type lease. If the lessor can't say its is probable the lessee will make all payments, how should the levee amount for payments received from the lessee?

A. As lease income

B. As reduction of the lease receivables and interest income

C. As a liability

D. As reduction of the lease receivables but no recognition of interest income.

23. For a contract to qualify as a lease:

A. The leased asset must be explicitly identified

B. The lessee must be able to direct the use of the asset during the lease term.

C. Both parties must agree that the contract is a lease.

D. The contract must be for a period greater than 12 months.

24. A company reissues treasury stock for an amount less than the price paid for the treasury stock but more than the common stock par value. The journal entry to record the resistance under the par method will include

A. A credit to Paid in Capital-Common Stock

B. A debut to Retained Earnings

C. A credit to Paid in Capital-Treasury Stock

D. A debtors to Paid in Capital- Treasury Stock

25. On January 14, Company A acquires a put option that allows it to sell 200 shares of Company B common stock for $30 per share any time during the next 6 months. The put option cost Company A $100. At March 30, a balance sheet date, the price of Company B common stock is $32 per hare and the fair value of the put option is determined to be $55. Company A has not designated the put option to be a hedge. What should be reported in the first quarter's income statement related to the put option?

A. Nothing, hedge accounting is not required.

B. Nothing, any gains or losses on the put option would be reported in other comprehensive income.

C. An unrealized loss of $400

D. An unrealized of $45