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Owner Company leased computer equipment to User Company on January 1 , 2 0 X 1 . Owner Company had purchased this computer equipment for
Owner Company leased computer equipment to User Company on January X Owner Company had purchased this computer equipment for $ The computer equipment has an expected useful life of five years. The terms of the lease require annual payments of $ for five years with the first payment being made on the lease signing date January X The four subsequent lease payments are made on December of XXX and X The interest rate used in computing the lease payments is compounded annually. Owner Company is accounting for this lease as a SALESTYPE LEASE.
How much INTEREST REVENUE should Owner Company report in Xthe SECOND year
Note: Round your calculations to the nearest dollar.
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