***PLEASE SHOW WORK AND HOW DECIDED ON ANSWE, PLEASE IGNORE SHADED BUBBLE AS THESE ARE GUESSES**

d.

e.

f.

Check my work Which one of the following ratios increases with the lessee's capitalization of a lease? Multiple Choice financial leverage Inventory turnover Return on equity Current ratio Check my work Consistent with ASC Topic 842 and IFRS 16, leases should be accounted for under the assumption. Multiple Choice executory rights unilateral property rights temporary Check my work Morey Corporation leases a tractor from Equity Leasing with a five-year non-cancelable lease on January 1, 20X1 under the following terms: 1. Flve payments $26,379.74 (a 9% Implicit rate, known to Morey) due at the end each year. 2. The payments were calculated based on the fair value (which is also the book value for Equity) of the tractor. 3. The lease is nonrenewable and the tractor reverts to Equity at the end of the lease term. 4. The tractor has a six-year economic life. 5. Morey has an excellent credit rating, 6. Equity offers no warranty on the tractor other than the manufacturer's two-year warranty that is handled directly with the manufacturer. Which of the following entries will Morey prepare to record the lease of the tractor on January 1, 20X1? Multiple Choice DR Right-of-use asset 131,898.70 CR Cash 131,898.70 DR Right-of-use asset 131,898.70 CR Cash 26,379.74 CR Finance lease liability 105,518.96 DR Right-of-use asset 102,607.95 CR Finance lease liability 102.607.95 O DR Rent expense 26,379.74 CR Cash 26,379.74