QUESTION 14 The amount to be recorded as the cost of an under a financa laseis equal to the A present value of the late payments plus the present value of any ungiando dual value present value of the lease payments of the fair value of these whichever is lower procent value of the lease payments D. carrying value of the asset on the lessor's books QUESTION 15 Which of the following describes the lease tom? A there is a bargain purchase option during the lease for it is a clase B. the asset has an alternative te during the lease tam sa acolo If the lease form is 90% or more of the economic is ca the base term is 75% or more of the economic Warranca la QUESTION 16 While only certain loses are current accounted for assor purchase there is the relation for considering allows to be purchases. The principal reason that support the dea is that A during the We of the lease the con effectively treat the property as it were owned Ball laces are generally for the economice of the property and the residual value of the property at the end of these is minimal at the end of the lease the property usually can be purchased by the D. alease reflects the purchase of sale of a quantifiable right to the use of property QUESTION 17 What impact does a bargain purchase option have on the present of the minime payments computed by the lost A The minimum lace payments would be increased by the option price 3. The lessee must increase the present value of the minimum lase payment by the present of the option There is no impact as the option does not enter to the transactions until the end of the selem The lessee must decrease the present value of the minimum base payment by the present value of the option price QUESTION 10 In computing the present value of the lease payments the should Ause the implicato in cas use both his incrementalbrowing rate and the implicit of the light there is not the Cu the more of the shat the imports new to the less Duis incrementa borrowing rate in all cases