What is the interest income for 2022? Exquisite Company is engaged in leasing business. A machine was leased to a lessee on January 1, 2022 under direct financing lease with the following details: Cost of machine Residual value guarantee Useful life and lease term Interest rate implicit in the lease PV of an ordinary annuity of 1 for 8 years at 10% PV of 1 for 8 years at 10% P3, 488, 960 160, 000 8 years 10% 5.335 0.466 The annual rental is payable at the end of each lease year. The equipment shall revert to the lessor upon expiration of the lease.