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Technold Inc. sells computer systems. Technold leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $21 million.
Technold Inc. sells computer systems. Technold leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $21 million. This noncancelable lease had the following terms: Lease payments: $3,449,757 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: 8% semiannually. Fair value of the computers at January 1, 2021: $25 million. What is the interest revenue that Technold would report for this lease In Its 2021 Income statement? (Round your answer to the nearest whole dollar.) Multiple Choice SO. $3,309.979. None of these answer choices is correct. $1,724,019
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