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QUESTION 22 (5 points) Bells, Inc. leased equipment to JBC Co. on Jan. 1, 2021, for 10 years. Equal annual payments of $422,045 are due
QUESTION 22 (5 points) Bells, Inc. leased equipment to JBC Co. on Jan. 1, 2021, for 10 years. Equal annual payments of $422,045 are due on January 1 of each year, with the first payment made this year. The interest rate on the lease is 9%. The sales price of the equipment is usually $2,680,000 and it cost Bells, Inc. $2,144,000. If Bells, Inc. classified the lease as sales-type, how much sales and interest revenue can the company report in 2021? (10 20) $0 in sales revenue and $203,216 in interest revenue $0 in sales revenue and $422,045 in interest revenue $536,000 in sales revenue and $203,216 in interest revenue $536,000 in sales revenue and $241,200 in interest revenue
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