Scenario: roberto baldwin

as the owner and manager of fantastic toys, roberto baldwin is fascinated by all the changes occurring and transforming the workplace. roberto is concerned about the important ob trends that he can understand and take advantage of in developing and positioning his company in the marketplace.

roberto is interested in this trend of globalization. he should know that globalization occurs when an organization

a) increases its connectivity with people and organizations in other parts of the world.

b) serves diverse customers within the firm's home country.

c) has a diverse workforce within the firm's home country.

d) has a substantially strong domestic market.

On january 1, 2018, wetick optometrists leased diagnostic equipment from southern corp. which had purchased the equipment at a cost of $2,256,342. the lease agreement specifies six annual payments of $490,000 beginning january 1, 2018, the beginning of the lease, and at each december 31 thereafter through 2022. the six-year lease term ending december 31, 2023 (a year after the final payment), is equal to the estimated useful life of the equipment. the contract specifies that lease payments for each year will increase on the basis of the increase in the consumer price index for the year just ended. thus, the first payment will be $490,000, and the second and subsequent payments might be different. the cpi at the beginning of the lease is 120. southern routinely acquires diagnostic equipment for lease to other firms. the interest rate in these financing arrangements is 12%. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) prepare the appropriate journal entries for wetick and southern to record the lease at its beginning.