A firm has net sales of $11,500,000, Cost of Goods Sold $5,800,000, Depreciation Expense of $500,000, Selling and Administrative Expenses of $850,000, Interest Expense of $2,200,000, and an average tax rate of 20%. 7 Operating Leases transfer control of the use of the lease asset a. and are not required to be included on the lessee's balance sheet b and are arranged to be similar to collateralized loans c and are basically the same as a finance lease d but not the asset itself 8 Lease liabilites are recognized by the lessee a. but are not required to be included on the lessee's balance sheet b at residual value on the balance sheet c at cost on the balance sheet d at the present value on the balance sheet 9 The discounted value of $5,000 to be paid every year for the next ten years, discounted at 8.5% a. 33,550.41 b. 32,806.74 c. 31,650.22 d 30,645.24 10 The discounted value of $5,000 to be paid every year for the next ten years, discounted at 5.5% a. 32,155.38 b. 32,806.74 c. 37,688.13 d38,608.67 Impact of interest rates on lease accour