A lease agreement includes the following provisions: Inception: 1/1/x0
Annual lease payments of $6,000 are due 12/31/x0,x1,x2
Annual lease payments of $4,000 are due 12/31/x3,x4,x5
There are 6 lease payments in all
Lessor's implicit rate of return: 12%
This is a finance lease to the lessor
How much interest revenue is recognized in 20x0 by the lessor (assume a calendar year fiscal year) ?
A) $3,600
B) $3,419
C) $2,550
D) $2,118
Correct Answer:
Verified
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