PLEASE ANSWER ALL THE QUESTIONS

1. A lessee will amortize the leased asset under both operating and finance leases.

True

False

2. Fallon Corporation leases a piece of equipment for an annual payment of $6,000 for 4 years, with the first payment being made immediately. The lease qualifies as a finance lease. The useful life of the equipment is 5 years. Fallons incremental borrowing rate is 7 percent per year. Determine the annual depreciation expense recorded by Fallon on this asset.

$5,437

$5,500

$5,143

$6,000

$4,349

3. The income of corporations is double taxed, but this is not true for proprietorships and partnerships.

Group of answer choices

False

True

4. Match the items on the left with the items on the right.

Group of answer choices

Liability created with the sale of a product

[ Choose ] Embedded product warranty Current liabilities Liability Current ratio Unearned revenue

Account credits when gift cards are sold

[ Choose ] Embedded product warranty Current liabilities Liability Current ratio Unearned revenue

Current assets divided by current liabilities

[ Choose ] Embedded product warranty Current liabilities Liability Current ratio Unearned revenue

Liabilities that will be satisfied with one year or less

[ Choose ] Embedded product warranty Current liabilities Liability Current ratio Unearned revenue

Probably future sacrifice of econommic benefit arising from present obligation

[ Choose ] Embedded product warranty Current liabilities Liability Current ratio Unearned revenue