]

Abhijit Company leased equipment from Barua Corporation on July 1, 2024, for an 8-year period expiring June 30, 2032. Equal annual payments on July 1 of each year are $120,000. The first payment was made on July 1,2024 . The rate of interest contemplated by Abhijit and Barua is 10%. The cash selling price of the equipment is $704,000, and the cost of the equipment on Barua's accounting records is $560,000. The lease is appropriately recorded as a sales-type lease. What is the amount of selling profit on the sale and interest revenue that Barua will record for the year ended December 31, 2024 ? Multiple Choice Option C Option B Option A Option D