A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment in Year 10 applicable to interest should be:

Select one: a. Less than in Year 8 b. More than in Year 8 c. The same as in Year 12 d. Less than in Year 12

Quick Company's lease payments are made at the end of each period. Quick's liability for a capital lease will be reduced periodically by the

Select one:

a. Minimum lease payment minus the portion of the minimum lease payment allocable to interest

b. Minimum lease payment plus the depreciation of the related asset

c. Minimum lease payment minus the depreciation of the related asset

d. Minimum lease payment

Scott Co. entered into a 5-year capital lease requiring it to make equal annual payments each year-end. The payment in Year 2 should equal:

Select one:

a. The current liability shown on the balance sheet for the lease at the end of Year 1

b. The current liability shown on the balance sheet for the lease at the end of Year 1 plus the interest incurred in Year 2

c. The payment in Year 1 less an amount equal to the difference in interest between Years 1 and 2.

d. One-fifth of the original lease liability