On January 3, 20X4, Salas Company leased a piece of equipment that cost Salas $23,500, to Merlins Haberdashery over a 6-year period, which is equal to the useful life of the equipment. The lease calls for annual payments of $6,000, beginning on January 3, 20X4. The rate implicit in the lease, which is not known to the lessee, is 7%. The lessees incremental borrowing rate is 8%. The present value of an annuity in advance of $1 per period for 6 periods is: 5.100 at 7% 4.993 at 8% How much will Salas recognize on its 20X4 income statement as gain on sale of equipment and as interest income? a. Gain on sale of $7,100 and interest income of $2,142 b. Gain on sale of $6,458 and interest income of $2,397 c. Gain on sale of $6,458 and interest income of $1,917 d. Gain on sale of $7,100 and interest income of $1,722 5.100 at 7% 4.993 at 8% How much will Salas recognize on its 20X4 income statement as gain on sale of equipment and as interest income? a.Gain on sale of $7,100 and interest income of $2,142 b.Gain on sale of $6,458 and interest income of $2,397 c.Gain on sale of $6,458 and interest income of $1,917 d.Gain on sale of $7,100 and interest income of $1,722