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Crystal Corporation makes $4,000 payments every month for leasing office equipment. rystal recorded a lease payment as follows: Lease payable Interest expense Cash Amortization
Crystal Corporation makes $4,000 payments every month for leasing office equipment. rystal recorded a lease payment as follows: Lease payable Interest expense Cash Amortization expense Right-of-use asset Crystal most likely has a(n): A. An operating lease. B. A sales-type lease with selling profit. C. A sales-type lease without selling profit. D. A finance lease. 2,400 1,600 4,000 2,400 2,400 10. S Corp. has a rate of return on assets (net income / total assets) of 10% and a debt/equity ratio (total liabilities/total shareholders' equities) of 2 to 1. The immediate impact of recording a finance lease on these ratios is a(n): Return on Assets ABCD A. increase B. decrease C. decrease D. increase Debt/Equity increase increase decrease decrease 11. Green Industries purchased a machine from Cyan Corporation on October 1, 2018. In payment for the $144,000 purchase, Green issued a one-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 18%. Monthly installment payments are closest to: A. $12,000. B. $12,668. C. $12,794. D. $13,201.
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