"SunlandCompany leased equipment to the Polan Company on July 1, Year 18, for a 10-year period expiring June 30, Year 28. Equal annual payments under the lease are $246000 and are due on July 1 of each year. The first payment was made on July 1, Year 18. The rate of interest contemplated by Sunland and Polan is 8%. The lease receivable before the first payment is$1740000 and the cost of the equipment on Sunland s accounting records was $1548000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Sunland, what is the amount of profit on the sale and the interest revenue that Sunland would record for the year ended December 31, Year 18?"

		$0 and $0
		$192000 and $139200
		$192000 and $119520
		$192000 and $59760

Which of the following is an advantage of leasing?

		Protection against obsolescence.
		Leases often do not require any down payment.
		Lease agreements may contain less restrictive provisions than other debt agreements.
		All of these answer choices are correct.

A lessee with a finance lease containing a bargain purchase option should depreciate the leased asset over the

		"life of the asset or the term of the lease, whichever is longer."
		term of the lease.
		period ending with the bargain purchase option date.
		asset's remaining economic life.