On January 1, 2019, Blue Co. leased a new machine from Green Co. The following information pertains to the lease:Lease term 5 yearsAnnual rental payable at beginning of each year $ 55,000 Useful life of machine 7 yearsBlue’s incremental borrowing rate 12 %Implicit interest rate in lease (known by Blue) 10 %Present value of annuity of $1 in advance for 5 periods at 10% 4.17 12% 4.04 The cost of the machine on Green’s accounting records is $214,500. It is customized for Blue’s use with no alternative use to Green at the end of the lease term. At the beginning of the lease term, Blue Co. should initially record a right-of-use asset ofa. $214,500b. $222,200c. $229,350d. $174,350

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.