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Question 2 (1 point) On January 1, 2019, Lessee Co. entered into a 9-year agreement with Lessor Co. to use equipment in typical use and

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Question 2 (1 point) On January 1, 2019, Lessee Co. entered into a 9-year agreement with Lessor Co. to use equipment in typical use and with a useful life of 12 years. The lease requires yearly payments in advance on January 1 of each year for $62,500 . The FMV of the asset on open market on January 1 is $490,000. The asset cost $440,000 on January 1, 2019 to the Lessor. The agreement was structured by a lease broker, who charged Lessee Co. $1,800 to write the lease, with payment due on January 1, 2019. Lessee Co. has analyzed the service or lease implications and determined that this is a lease arrangement for accounting purposes. The Lessee has guaranteed a residual value to the Lessor, in order to retain the asset in good condition. The guaranteed residual value for the asset is $41,000. The rate implicit in the lease is 5%, the lessee's incremental borrowing rate is 6%, and the lessee is aware of the lease rate. Both companies use straight line depreciation for assets and a calendar year for year-end. Assuming a finance lease for the Lessor and Lease Receivable correctly recorded as 492,880 how much interest revenue will be recorded on December 31, 2019

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