6. Title to a right-of-use asset with a remaining economic life of 20 years does not transfer to the lessee at the end of the 10 year lease term, but the lessor anticipates an unguaranteed residual value of $2,000. What is the period and residual value used by the lessee to depreciate the leased asset? a. Period Residual value 1 Remaining life at inception $0 2 Remaining life at inception $2,000 3 Lease term $2,000 4 Lease term $0 Choice 1 b. Choice 2 C. Choice 3 d. Choice 4 7. A company makes the following calculations to its defined benefit plan for funding purposes for an employee that is 40 years of age. The accumulated benefit method - $2, 111; projected unit credit method $3, 324 and the level contribution method: $4, 227. The company uses the accumulated benefit for funding the defined benefit plan. Record the journal entries for the pension expense and the pension payment. a. Dr. Pension expense $3, 324 Cr. Cash $3, 324 b. Dr. Pension expense $4, 227 Cr. Cash $2, 111 and Cr. Accrued pension liability $2, 116. C. Dr. Pension expense $2, 111 Cr. Cash $2, 111 d. Dr. Pension expense $3, 324 Cr. Cash $2, 111 and Cr. Accrued pension liability $1, 213