Question
Homework #4 2018 problem 25. Toyota leased equipment from United Machines on July 1, 2020, in a finance lease. The present value of the lease
Homework #4 2018
problem 25.
Toyota leased equipment from United Machines on July 1, 2020, in a finance lease. The present value of the lease payments discounted at 10% was $82,000. Ten annual lease payments of $12,000 are due each year beginning July 1, 2020. United Machines had constructed the equipment recently for $66,000. How much related interest revenue will United Machines record for the year ending December 31, 2020? Ignore taxes.
| a. | $0 | |
| b. | $23,000 | |
| c. | $3,500 | |
| d. | $19,500 | |
| e. | $16,000 |
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Primary English Audit And Test
Authors: Sue Reid, Angela Sawyer, Mary Bennett-Hartley
4th Edition
1446282759, 978-1446282755
