On January 1, 2021, Worchester Co. leased non-specialized machinery under a 6-year lease. The machinery has a 10-year economic life. The present value of the monthly lease payments is determined to be 70% of the machinery's fair value. The lease contract includes neither a transfer of title to Worchester nor a bargain purchase option. Worchester will record straight-line lease expense:. a. if using IFRS, but not U. S. GAAP.
b. if using U. S. GAAP, but not IFRS.
c. if using either U. S. GAAP or IFRS.
d. neither using U. S. GAAP nor IFRS.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $