On January 1, 2011, Larsen Corporation sold a machine to Parson Corporation and simultaneously leased it back for ten years. The following information is available regarding the lease:

How much profit should Larsen recognize on January 1, 2011, on the sale of the machine?
A) $0.
B) $37,211
C) $90,000
D) $37,500

Question

On January 1, 2011, Larsen Corporation sold a machine to Parson Corporation and simultaneously leased it back for ten years. The following information is available regarding the lease:

How much profit should Larsen recognize on January 1, 2011, on the sale of the machine?
A) $0. 
B) $37,211 
C) $90,000 
D) $37,500

Quizplus · Accepted Answer

The Answer of On January 1, 2011, Larsen Corporation sold a machine to Parson Corporation and simultaneously leased it back for ten years. The following information is available regarding the lease:

How much profit should Larsen recognize on January 1, 2011, on the sale of the machine?
A) $0. 
B) $37,211 
C) $90,000 
D) $37,500

On January 1, 2011, Larsen Corporation Sold a Machine to Parson