27-30. All

C) $538. 27. Which of the following statements about leases is least accurate? A) All else equal, when a lease is capitalized the lessee's income will rise over the term of the lease B) In the first years of a finance lease, the lessee's debt to equity ratio is greater than it would have been if the firm had used an operating lease. C) In the first years of a finance lease, the lessee's current ratio is greater than it would have been had the firm used an operating lease. 28. For a given par value, which of the following debt issues will have the highest cash flows from financing? A) Zero-coupon bond. B) Bonds issued at premium. C) Bonds issued at discount. 29. At the beginning of 20X3, Creston Company issues $10 million face amount of 6% coupon bonds when the market rate of interest is 7%. The bonds mature in four years and pay interest annually. Assuming the effective interest rate method, what is the bond liability Creston will report at the end of 20X3? A) $9,661,279 B) $9,737,568 C) $10,346,511 30. Crawford Corp. and Vernon Corp. are lessors who have leased assets on identical terms to firms with similar credit ratings. Crawford reports its lease as a sales-type lease and Vernon reports its lease as a direct financing lease. It is most likely that: A) Crawford retains the leased asset on its balance sheet. B) both firms report under U.S. GAAP. C) Vernon reports under IFRS. voor 20X0 with an 8% semiannual coupon rate, 5 years to