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Arizona Sunshine started a lease for a piece of farming from Bologna Tractors. The lease started on July 1, 2024. The lease was recorded as
Arizona Sunshine started a lease for a piece of farming from Bologna Tractors. The lease started on July 1, 2024. The lease was recorded as a "sales-type" lease. The present value of the lease payments discounted at 10% was $40.5 million. Ten annual lease payments of $6 million are due at the beginning of each year beginning July 1, 2024. Bologna had purchased the equipment for $33 million. What amount of interest revenue from the lease should Bologna report in its 2024 income statement?
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