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Bramble Equipment Leasing Company leased equipment to Crane Healthcare System on January 1 , 2 0 2 5 , for a four - year period.

Bramble Equipment Leasing Company leased equipment to Crane Healthcare System on January 1,2025, for a four-year period. Equal annual payments under the lease are $570000 and are due on January 1 of each year. The first payment was made on January 1,2025. The implicit rate of interest contemplated by Bramble Equipment Leasing and known to Crane Healthcare is 8%. Crane's incremental borrowing rate is 11%. The cost of the equipment on Bramble Equipment Leasing accounting records was $850000. Assuming that the lease is appropriately recorded as an operating lease, what is the amount of profit on the sale that Bramble Equipment Leasing would record for the year ended December 31,2025?
\table[[,PV Annuity Due,PV Ordinary Annuity,PV Single Sum],[8%,4 periods,3.57710,3.31213,0.73503],[11%,4 periods,3.44371,3.10245,0.65873]]
$518182
$0
$1188947
$798182
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