Multiple Choice Question 88 Crane, Inc. reports a taxable and financial loss of $1050000 for 2019. Its pretax financial income for the last two years was as follows: 2017 2018 $600000 600000 The amount that Crane, Inc. reports as a net loss for financial reporting purposes in 2019, assuming that it uses the carryback provisions, and that the tax rate is 30% for all periods affected, is $0. O $1050000 loss. O $315000 loss. $735000 loss. Multiple Choice Question 79 Sandhill Corporation enters into an agreement with Yates Rentals Co. on January 1, 2018 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $654864 are due on January 1 of each year. (b) The fair value of the machine on January 1, 2018, is $2000000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c) Sandhill depreciates all machinery it owns on a straight-line basis. (d) Sandhill's incremental borrowing rate is 10% per year. Sandhill does not have knowledge of the 8% implicit rate used by Yates. (e) Immediately after signing the lease, Yates finds out that Sandhill Corp. is the defendant in a suit which is sufficiently material to make collectibility of future lease payments doubtful. If Yates records this lease as a direct-financing lease, what amount would be recorded as Lease Receivable at the inception of the lease? O $1964592 $1345136 $654864 $2000000