Divine Company used leases as method of selling products. The entity completed construction of a passenger bus. At the beginning of current year, the bus was leased to Cagsawa Company on a contract specifying that ownership of the bus shall transfer to the lessee at the end of the lease period. Original Cost of the bus 10,000,000 Fair Value of Bus at lease date 12,000,000 Lease payments payable in advance every January 1 1,800,000 Estimated Residual Value 2,000,000 Implicit Interest Rate 12% Lease Term 20 years PV of an annuity due of 1 at 12% for 20 periods 8.37 PV of 1 at 12% for 20 periods 0.10

1. What amount should be reported as total unearned interest income? _________________

2. What amount should be reported as gross income on sale? ________________

3. What amount should be reported as interest income for current year? _______________