Question 5 2 points Save Answer Ted Manufacturers leased equipment to Robin Ranch on July 1. Ted recorded the lease as a sales-type lease at $810,000, the present value of lease payments discounted at 10 %. The lease called for ten annual lease payments of $120,000 due each July 1, beginning at inception of the lease. Ted manufactured the equipment at a cost of $750,000. In its December 31 income statement, Ted would record: A. Interest revenue of $40,500 B. Depreciation expense of $81,000 C. Lease revenue of $120,000 D. Gross profit of $60,000