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Elba Company leased machinery to Conecuh Company on January 1, 2014, for a ten-year period expiring December 31, 2023. Equal annual payments under the lease are $300,000 and are due on January 1 of each year. The first payment was made on January 1, 2014. The rate of interest used by Elba and Conecuh is 9%. The cash selling price of the machinery is $2,100,000 and the cost of the machinery on Elba's accounting records was $1,860,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Elba, what amount of interest revenue would Elba record for the year ended December 31, 2014?

$189,000

$162,000

$81,000

$0

Lofton Company leased machinery to Cooney Company on July 1, 2014, for a ten-year period. Equal annual payments under the lease are $150,000 and are due on July 1 of each year. The first payment was made on July 1, 2014. The rate of interest used by Lofton and known to Cooney is 9%. The cash selling price of the machinery is $1,050,000 and the cost of the machinery on Loftons accounting records was $930,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Lofton, what amount of interest revenue would Lofton record for the year ended December 31, 2014?

$94,500

$81,000

$40,500

$0