Save & Edit Grant Industries leased exercise equipment to Silver Gyms on July 2021. Grant recorded the lease as a sales-type lease at $810,000, the present value of lease payments discounted at 10% The lease called for ten annual lease payments of $120,000 due at the beginning of each year. The first payment was received on July 1, 2021. Grant had manufactured the equipment at a cost of $750,000. The total increase in earnings (pretax) on Grant's 2021 income statement would be Multiple Choice O so $93,000 $94,500 $100,500 5 Quiz 0 Saved We classify a lease as a finance lease if: Multiple Choice the usual risks and rewards are retained by the lessor, the usual risks and rewards are transferred to the lessee. the present value of lease payments is less than the asset's book value. . the present value of lease payments is less than the asset's fair value, H if it is "reasonably certain that the lessee will exercise a purchase option: Multiple Choice The lease is classified as a financesales-type lease. Both the lessee and the lessor consider the exercise price of the option to be an additional cash payment It's assumed that the lease term ends on the date that the option is expected to be exercised. All of these answer choices are correct Which of the following is not required in order for a contract to contain a lease? Multiple Choice The asset must be explicitly identified in the contract The customer can derive substantiaty all of the potential economic benefits from using the asset The customer can direct the use of the asset throughout the contract term The provider cannot have the right to substitute alternative assets during the period of use and could benefit economically from such a substitution