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28) Although only certain leases are currently accounted for as a
sale or purchase, there is theoretic justification for considering all
leases to be sales or purchases. The principal reason that supports
this idea is that
29) An essential element of a lease conveyance is that the
30) Which of the following is a correct statement of one of the
capitalization criteria?
31) Discount on notes payable is charged to interest expense
32) The generally accepted method of accounting for gains or losses
from the early extinguishment of debt treats any gain or loss as
33) A corporation borrowed money from a bank to build a building.
The long-term note signed by the corporation is secured by a
mortgage that pledges title to the building as security for the loan.
The corporation is to pay the bank $80,000 each year for 10 years to
repay the loan. Which of the following relationships can you expect
to apply to the situation?