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INTERMEDIATE ACCOUNTING -2 2. E DI SA PUSO MO company an authorized dealer of heavy machinery, decided to lease its heavy machinery to Krusty Krab

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INTERMEDIATE ACCOUNTING -2 2. E DI SA PUSO MO company an authorized dealer of heavy machinery, decided to lease its heavy machinery to Krusty Krab Company with the following provisions. a) Annual rental payable 800,000 b) Lease term and useful life of heavy m Machinery 6 years c) Cost of Machinery 2,000,000 d) Estimated residual value- unguaranteed 200,000 e) Initial direct cost paid by the E DI SA PUSO KO Company 150,000 f) Implicit interest rate 12% At the end of the lease term, the heavy machinery will revert back to E DI SA PUSO MO company and not to Krusty Krab Company. The Present Value for six periods is .51 and the PV of an Ordinary Annuity at 12% for 6 periods is 4.11. Your answer What is the amount of gross investment? * 1 point Your answer What is the amount of net investment? * 1 point Your answer What is total unearned interest income * 1 point Your answer How much is the Gross income * 1 point Your

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