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sHOW WORK accounting a Cechnoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the
sHOW WORK accounting a
Cechnoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $21 million. This noncancelable lease had the following terms: - Lease payments: $3,326,577 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022. Lease term: 5 years (10 semi-annual payments). - No residual value; no purchase option. Economic life of equipment: 5 years. - Implicit interest rate and lessee's incremental borrowing rate: 7% semiannually. - Fair value of the computers at January 1, 2018: $25 million. Vhat is the interest revenue that Technoid would report for this lease in its 2018 income statement? (Round hour answer to the nearest dollar.) Multiple Choice 0 None of these answer choices is correct. 0 $0. 0 $1,487,144 0 $2,907,619Step by Step Solution
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