Trap Co. leased a new machine to Lake Co. on January 1, Year 4. Trap properly classified the lease as an operating lease. The lease expires on January 1, Year 9. The annual rental is $90,000. Additionally, on January 1, Year 4, Lake paid $50,000 to Trap as a lease bonus and $25,000 as a security deposit to be refunded upon expiration of the lease. In Trap’s Year 4 income statement, the amount of rental revenue should be

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak