Question: M & O Company is preparing an Excel spreadsheet for a 5-year finance lease. The implicit interest rate in the lease is 6%. The beginning

M & O Company is preparing an Excel spreadsheet for a 5-year finance lease. The implicit interest rate in the lease is 6%. The beginning of the lease is January 1. Lease payments are made each December 31. A portion of the spreadsheet appears as follows: A B C D E 1 Effective rate: 0.06 2 Lease payments: 100,000 3 Term to maturity in years: 5 4 5 Period Cash Payment Interest Expense Change in Balance Outstanding Balance 6 0 7 1 8 2 What formula should M & O use in cell E8 to calculate the carrying value of the lease payable after the second lease payment? Multiple Choice = E7 ? D8 = E7 + D8 = E8 + D8 = PV(C2,C3,0,C1,type)Advance payments made by the lessee on an operating lease are considered to be: Multiple Choice Lease expense. Amortization of the right-of-use asset. Deferred revenue to the lessor. A prepayment of interest expense

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