Question

Federated Fabrications leased a tooling machine on January 1, 2021, for a three-year period ending December 31, 2023. What is the duration of the lease?

1) 1 year
2) 2 years
3) 3 years
4) 4 years

Answer 1

The lease for the tooling machine by Federated Fabrications has a duration of 3 years, starting from January 1, 2021, to December 31, 2023.

Step-by-step explanation:

The duration of the lease for the tooling machine that Federated Fabrications entered into on January 1, 2021, and ending on December 31, 2023, is 3 years. This calculation is straightforward as it includes the beginning of the lease period in 2021 and the end of the lease period in 2023. If we count each year in the specified range (2021, 2022, and 2023), we get three full years.