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MC Q. Westerly Fruits leased farm equipment from Berlin Machinery on July 1, 2021. The lease was recorded as a sales-type lease. The present
MC Q. Westerly Fruits leased farm equipment from Berlin Machinery on July 1, 2021. The lease was recorded as a sales-type lease. The present value of the lease payments discounted at 10% was $40.5 million. Ten annual lease payments of $6 million are due at the beginning of each year beginning July 1, 2021. Berlin had purchased the equipment for $33 million. What amount of Interest revenue from the lease should Berlin report in its 2021 income statement? Multiple Choice $2,025.000 50 $1,725,000
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