What amount should be reported as sales? Resolution Company is a dealer in equipment. On January 1, 2022, the entity leased equipment to a lessee; the lease is appropriately recorded as a sales type lease. The following are the details of the lease: Annual rental payable in advance Lease term Useful life of the equipment Cost of equipment Purchase option that is reasonably certain to be exercised by the lessee Interest rate implicit in the lease PV of an annuity of 1 in advance at 10% for 8 periods PV of ordinary annuity of 1 at 10% for 8 periods PV of 1 at 10% for 8 periods P1,000,000 8 years 10 years 500,000 500,000 10% 5.87 5.33 0.47