NOTE: the Following Multiple Choice Questions Require Present Value Information

Multiple Choice

NOTE: The following multiple choice questions require present value information. On January 1, 2006, Price Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease called for:
What accounting method should Price use to account for the equipment lease?

A) Operating Lease method
B) Capital Lease method
C) Equipment Lease method
D) Lessee Accounting method