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Firm A recently leased equipment used in its manufacturing plant. If the leased asset is worth less than $100,000 at the end of the lease, Firm A will pay the lessor the difference.
Firm B provided debt financing to an unrelated entity. The debt has a provision whereby Firm B cannot be repaid until all other senior debt is satisfied.
Do Firm A and Firm B have a variable interest? A. Only one has a variable interest. B. Neither have a variable interest. C. Both have a variable interest. |