On January 1, 2016, The Hammel Company (lessee) entered into a five-year, noncancelable lease for a machine with payments of $25,981.62 due each January 1. The first payment is due January 1, 2016. The McMillan Company (lessor) has a 10% interest rate known by Hammel. Fair Value and Book Value of machine: $100,000 Property Taxes included in annual S25,981.62 payments: $2,000 No renewal options. No salvage value. Straight-line depreciation used by both lessee and lessor . Economic life of the asset is 5 years. McMillan's Interest Revenue will be:.a. Zero in 2016, but an amount in year 2017 through 2020 that is higher every year b. Zero in 2016, but an amount in year 2017 through 2020 that is lower every year c. An amount in 2016 through 2020 that is higher every year d. An amount in 2016 through 2020 that is lower every year

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents