Warren Co. recorded a right-of-use asset of $840,000 in a 12-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after 3 years will be: Multiple Choice $985,833 $705,833. $630,000. $910,000. On January 1, 2018, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $240,000 for the machine and is leasing it to Zone for $39,000 per year, an amount that will return 10% to Calloway. The present value of the lease payments is $240,000. The lease payments are due each January 1, beginning in 2018. What is the appropriate interest entry on December 31, 2018? Multiple Choice 24,000 Interest receivable Interest revenue 24,000 20,100 Cash Interest receivable 20,100 20,100 Interest receivable Interest revenue 20, 100 B Corp. is a lessee and has a debt/equity ratio of 2 to 1. The debt/equity ratio is increased when B records: a. b. A Finance Lease yes no yes no An Operating Lease yes no no yes C. d Multiple Choice Option A o Option B a Option C