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(b) On December 31, 2017, Cheyenne Co. sold a machine to Cross Co. and simultaneously leased it back for one year. The sales price of
(b) On December 31, 2017, Cheyenne Co. sold a machine to Cross Co. and simultaneously leased it back for one year. The sales price of the machine was $483,700, the carrying amount is $418,300, and it had an estimated remaining useful life of 14 years. The present value of the rental payments for the one year is $35,200. At December 31, 2017, how much should Cheyenne report as deferred revenue from the sale of the machine?
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