On October 1, Y1 Lessee signed a 9-month lease agreement. The agreement calls for a payment of $3,000 on October 1, Y1 and a payment of $45,000 on June 30, Y2. Based on these facts, Lessee should record lease expense of:

A)$3,000 in Y1 and $45,000 in Y2

B) $24,000 in Y1 and $24,000 in Y2

C) $16,000 in Y1 and $32,000 in Y2

D) $0 in Y1 and $48,000 in Y2

E) $48000 in Y1 and $0 in Y2

On January 1, Y1 Lessee signed a 4-year lease. The lease requires 4 annual payments. The payments are $100,000 on 12/31/Y1, $100,000 on 12/31/Y2, $150,000 on 12/31/Y3 and $150,000 on 12/31/Y4. How much lease expense should Lessee record in Y1 if the lease is classified as an operating lease? Group of answer choices:

A) $125,000

B) $150,000

C) $0

D) $100,000

E) $134,526

F) $101,914

Note: the lease term and payments are the same as on the previous question. On January 1, Y1 Lessee signed a 4-year lease. The lease requires 4 annual payments of $200,000, with the first payment due immediately on January 1, Y1 and on each January 1 for the next three years (1/1/Y2. 1/1/Y3, 1/1/Y4). What is the amount the Lessee should report as its lease liability on December 31, Y1 if is classified as a finance lease?

A) $556,653

B) $715,419

C) $800,000

D) $536,565

E) $600,000

F) $515,419

Note: the lease term and payments are the same as on the previous question. On January 1, Y1 Lessee signed a 4-year lease. The lease requires 4 annual payments of $200,000, with the first payment due immediately on January 1, Y1 and on each January 1 for the next three years (1/1/Y2. 1/1/Y3, 1/1/Y4). What is the amount the Lessee should report as its lease liability on December 31, Y1 if is classified as an operating lease?

A) $556,653

B) $515,419

C) $0

D) $572,653

E) $536,565

F) $356,653

Lessor owned an asset. The historical cost is $90,000. The asset has a 10-year historical cost,

with zero salvage value. The Lessor signed a 9-year lease contract with lessee. Which of the following statements is correct with regard to the Lessors annual depreciation expense if the lease is classified as an operating lease or classified as a financing lease? (assume that the facts could support either classification)

A) $10,000 for both an operating and a financing lease

B) $9,000 for both an operating and financing lease

C) $10,000 for an operating lease and $0 for a financing lease

D) $9,000 for an operating lease and $0 for a financing lease

E) $0 for both an operating and financing lease

F) $10,000 for an operating lease and $9,000 for a financing lease

G) $9,000 for an operating lease and $10,000 for a financing lease