103 Final Exam Answers:

^ 1. the probability that the event will occur is greater than the probability that
it will not occur
^ 2. Fair Value minus Transaction Cost
^ 3. In decreasing amounts during the lease term
^ 4. Initial direct cost
^ 5. Credit to Interest Expense
^ 6. False; true
^ 7. True: True
^ 8. Processing other loan documents not related to loan
^ 9. decrease; increase
^ 10. partly bond and partly equity
^ 11. The excess of the present value over the face value.
^ 12. Three months of accrued interest income.
^ 13. True, False
^ 14. a discount
^ 15. the present value of the new debt at the original interest rate
^ 16. Accounts receivable at face value plus interest and other charges.
^ 17. Separate line item in profit or loss
^ 18. In the period specified by the lease
^ 19. Reasonably possible
^ 20. Profit or loss
^ 21. yes, yes
^ 22. established pattern of past practice
^ 23. less than stated rate
^ 24. residual value at end of the lease term
^ 25. True, False
^ 26. 148,000
^ 27. 144,000
^ 28. 36,000
^ 29. 0
^ 30.162,400 Loss
^ 31. 1,750,000
^ 32. 2,900,000
^ 33. 2,526,000
^ 34. 100,000
^ 35. 6,145,000
^ 36. 3,100,000
^ 37. Debit notes receivable for 50,000
^ 38. 2,160,000
^ 39. 1,900,000
^ 40. 80,000 Premium
^ 41. 2,000,000
^ 42. 806,400
^ 43. 288,000
^ 44. 84,930
^ 45. 0
^ 46. 634,640
^ 47. 6,392,400
^ 48. 5,392,400 or 6,392,400
^ 49. 426,160
^ 50. 739,139