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Munchin Manufacturing Company leases an asset to Peter Inc in a sales - type lease. The present value of the lease payments is $ 4

Munchin Manufacturing Company leases an asset to Peter Inc in a sales

-

type lease. The present value of the lease payments is $

400, 000

and the cost of the asset is $

330, 000 .

At the beginning of the five

-

year lease term, Munchin should recognize a profit of:

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