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On January 1, 2014, Stephen Corp

Question 70

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On January 1, 2014, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follows: (round to the nearest whole dollar)

On January 1, 2014, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follows: (round to the nearest whole dollar) On January 1, 2014, Stephen should record a debit to Lease Receivable for A) $67,100 B) $70,814 C) $100,000 D) $108,000

On January 1, 2014, Stephen should record a debit to Lease Receivable for


A) $67,100
B) $70,814
C) $100,000
D) $108,000

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