Source Inc. (lessor) entered in a lease agreement of equipment for a 5-year period with Lemon Inc. (lessee). The lease is properly classified as an operating lease by Source Inc. Lease payments were structured as follows:

Year One: $7,000

Year Two: $14,000

Year Three: $10,000

Year Four: $12,000

Year Five: $12,500

What is the amount of lease revenue recognized in Year One and Year Two by Source Inc.?

Year One Year Two

	A.	$6,000 $10,000
	B.	$11,100 $11,100
	C.	$10,100 $10,100
	D.	$12,500 $10,000