On January 1, 2020, ECQ Company leased to China Company a Machinery in a Sales Type Lease with the following details:

Annual Rental payable at the end of each year600,000

Lease Term and Useful Life5 years

Cost of Machinery750,000

Implicit Interest Rate12%

Payment starts on December 31, 2020

1.How much is the Financial Revenue of the Sales Type Lease?

2.How much is the Gross Profit of the Sales Type Lease?

3.How much is the Carrying Amount of the Lease as of December 31, 2021?

4.How much is the Interest Income for 2021?