A lease agreement included the following provisions: Inception of the lease: 1/1/2014 Annual lease payments of $6,000 are due 12/31/2014, 12/31/2015, 12/31/2016 Annual lease payments of $4,000 are due 12/31/2017, 12/31/2018, 12/31/2019 The lease calls for a total of six lease payments. The lessor's implicit rate of return is 12%. The lease is a capital lease to the lessor. How much interest
revenue is recognized in 2014 by the lessor, assuming a calendar-year fiscal year?
a. $3,600
b. $3,419
c. $2,550
d. $2,118
C
Business
You might also like to view...
Using the allowance method, the uncollectible accounts for the year is estimated to be $28,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debt expense for the period?
a. $7,000 b. $21,000 c. $28,000 d. $35,000
Business
A life insurance policy where the insured can choose where the cash value can be invested is called
A) whole life B) variable life C) modified life D) universal life
Business