Question
Blossom Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $141000, the present value of the
Blossom Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $141000, the present value of the lease payments discounted at 8%. The first of eight annual lease payments of $21500 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Blossom had purchased the equipment for $110000. What amount of interest revenue from the lease should Blossom report in its 2021 income statement?
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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