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Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $20 million.
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $20 million. This noncancelable lease had the following terms: Lease payments: $3,550,809 semiannually, first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025. Lease term: 5 years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 10% semiannually. Fair value of the computers at January 1, 2021: $24 million. . . What is the interest revenue that Technoid would report for this lease in its 2021 income statement? (Round your answer to the nearest whole dollar.) Multiple Choice $0. O $3,939,249. None of these answer choices is correct. O $2,044,919
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