Danville Corporation buys a truck for $52,000 and leases it to Viceroy for 8 years. At the end of that time, Viceroy can buy the truck for $7,000 in cash. Which of the following is not true? a. If this purchase option is viewed as a bargain, Danville should record the $7,000 as a future cash flow in accounting for the lease even though it is not guaranteed. b. Unless the purchase option is viewed as a bargain, Danville cannot account for this lease as a capital lease. c. The purchase option cannot be viewed as a bargain unless it is significantly below the expected fair value of the truck on that date. d. If this purchase option is viewed as a bargain, Danville's profit to be recognized in the first year will be increased.

A: Future value refers to the concept of time, the value of money used for determining the value of…

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

A: Errors of principle refers to errors that are carried out at time of noting down transactions…

A: Definition:   Financial accounting standards board (FASB): This is the organization that creates,…

A:

A: Child Tax Credit is $3,600 for children aged 6 and Under at end of 2021 Child Tax Credit is $3,000…

A: Sarbanes-Oxley Act is formulated during 2002 under US federal law. The prime purpose of the act is…

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

A: Net Present Value is used to evaluate the investment and financing decisions that involve cash flows…

A: Extraordinary things vs. Nonrecurring Items: an summaryExtraordinary things area unit gains or…

A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…

A: Given case is: All-Around Sound Co. discovered a fraud whereby one of its front office…

A:

A: Preemptive rights means the rights to  be offered to purchase a property before it is offered to…

A: C corporation is the corporation that is taxed separately from its owners or shareholders.  In other…

A: The Annual Percentage Rate: The annual percentage rate is the nominal rate quoted by financial…

A: AGI means Adjusted Gross Income. It is the total income on which income tax payable would be…

A: Income statement: The financial statement which reports revenues and expenses from business…

A: The question is a follow-up question, and, the learner has reposted it to clear the confusion so…

A: The recovery of net working capital (NWC) refers to the return of funds initially tied to current…

A: The term Unicorn in finance was popularized by Aileen Lee, a popular venture capitalist &…

A: Wage-Bracket Method:EmployeeGross Wageor SalaryAmount to BeWithheldRuiz S. (Single)$1040…

A: An expense that benefits more than one product and for which the contribution to each product cannot…

A: In general, a "eligible rollover distribution" is any payment paid in a lump sum or over a period of…