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Technold Incorporated sells computer systems. Technold leases computers to Lone Star Company on January 1,2024. The manufacturing cost of the computers was $20 million. This
Technold Incorporated sells computer systems. Technold leases computers to Lone Star Company on January 1,2024. The manufacturing cost of the computers was $20 million. This noncancelable lease had the following terms: - Lease payments: $3,311,766 semlannually; first payment on January 1, 2024; remaIning payments on June 30 and December 31 each year through June 30,2028. - 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% semlannually. - Fair value of the computers on January 1, 2024: $24 million. What is the Interest revenue that Technold would report for this lease in its income statement for the year ended December 31,2024 ? Note: Round your answer to the nearest whole dollar. Multiple Choice $0 $3,177,581 $1,655,059 None of these answer choices is correct
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