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Cullumber Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $ 131000, the present value of the
Cullumber Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $ 131000, the present value of the lease payments discounted at 10%. The first of eight annual lease payments of $ 19600 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Cullumber had purchased the equipment for $ 120000. What amount of interest revenue from the lease should Cullumber report in its 2021 income statement? $ 6550 $ 6000 $ 5570 O $0
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