Question: BRB Co, leases a machine from Draper Lease commenced 1/1/22 4-year lease, asset life 6 years FMV $25,000, book value $20,000 Unguaranteed salvage value $8,250

BRB Co, leases a machine from Draper Lease commenced 1/1/22 4-year lease, asset life 6 years FMV $25,000, book value $20,000 Unguaranteed salvage value $8,250 Implicit and incremental rate: 5% January 1 payments: $4,892 Operating Lease Present value of payments: $18,214 BRE'S 2022 journal entries will have what effect on 2022 Net Income? Select one O a: $5,219 b. 58,225 O c. $9.445 O d. $4.553 O e 54,892 In a sale-leaseback transaction. Reddy Company is the seller lessee and Kaiser Company is the buyer-lessor. If none of the five criteris used to determine classification of the lease is met Seind one The lease is labeled a "ailed sale O b. Reddy will record the sale of the asset, followed by a tease Liability O Reddy can record a loss on the sale, but not again d. Reddy will record the lease as a finance lease. O. Kaiser will record the lease alla finance lease Jennifer Co. intends to lease a machine from an Corp Jennifer's incremental borrowing rate is 14% The prime rate of interest is 8%. Jan's implicitate in these is 10% which is not known to Jennifer Jennifer computes the present value of the minimum lease payments using which rate? Select one 089 Ob: 10% O c. 12% Od. 14% BRB Co, leases a machine from Draper Lease commenced 1/1/22 4-year lease, asset life 6 years FMV $25,000, book value $20,000 Unguaranteed salvage value $8,250 Implicit and incremental rate: 5% January 1 payments: $4,892 Operating Lease Present value of payments: $18,214 BRE'S 2022 journal entries will have what effect on 2022 Net Income? Select one O a: $5,219 b. 58,225 O c. $9.445 O d. $4.553 O e 54,892 In a sale-leaseback transaction. Reddy Company is the seller lessee and Kaiser Company is the buyer-lessor. If none of the five criteris used to determine classification of the lease is met Seind one The lease is labeled a "ailed sale O b. Reddy will record the sale of the asset, followed by a tease Liability O Reddy can record a loss on the sale, but not again d. Reddy will record the lease as a finance lease. O. Kaiser will record the lease alla finance lease Jennifer Co. intends to lease a machine from an Corp Jennifer's incremental borrowing rate is 14% The prime rate of interest is 8%. Jan's implicitate in these is 10% which is not known to Jennifer Jennifer computes the present value of the minimum lease payments using which rate? Select one 089 Ob: 10% O c. 12% Od. 14%

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