Question 7 1 pts Stacey Industries manufactures equipment that is sold or leased. On December 31, 2016, Stacey leased equipment to Michael Co. for a four-year period ending December 31, 2020, at which time possession of the leased asset will revert to Stacey. The equipment cost $625,000 to manufacture and has an expected useful life of five years. Its normal sales price is $711,797. The expected residual value of $35,000 at December 31, 2020, is not guaranteed. Equal payments under the lease are due on December 31 of each year. The first payment was made on December 31, 2016. Collectability of the remaining lease payments is reasonably assured, and Stacey has no material cost uncertainties. The interest rate implicit in the lease is 11%. Michael does not know this rate but has an incremental borrowing rate of 12 percent. Both companies use straight-line depreciation. The present value of $1 in 4 years at 11 percent is 0.65872 The present value of $1 in 4 years at 12 percent is 0.63552 The present value of an annuity due for 4 years at 11 percent is 3.44371 The present value of an annuity due for 4 years at 12 percent is 3.40183 What amount of revenue does Stacey recognize on December 31, 2016? O $745,039 O $688,742 O $768,095 O $711,797