Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value

Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value of the asset obtained or liability owed at the date of incurrence?

A. A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.

B. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.

C. A capital lease is entered into with the initial lease payment due one month subse-quent to the signing of the lease agreement.

D. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.

intermediate Accounting final examination acc421

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