Mission Corporation leases equipment to Mars Company for $ 60,000 per year under a four-year direct-financing (finance)

Question:

Mission leases equipment to Mars Company for $ 60,000 per year under a four-year direct-financing (finance) lease. The first payment is made at lease inception. The equipment has no residual value at the end of the lease, and the lease does not contain a bargain purchase option. Mission will earn 11% interest on the lease. The present value of the lease payments is $ 206,622. What is the total amount of interest revenue that Mission will earn over the life of the lease?
a. $ 33,378
b. $ 60,000
c. $ 206,622
d. $ 240,000 Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...