Abhijit Co. leased equipment from Barua Corp. on July 1, 2018, for an 8-year period expiring June 30, 2026. Equal annual payments on July 1 of each year are $120,000. The first payment was made on July 1, 2018. The rate of interest contemplated by Abhijit and Barua is 10%. The cash selling price of the equipment is $704,000, and the cost of the equipment on Barua's accounting records is $560,000. The lease is appropriately recorded as a sales-type lease. What is the amount of selling profit on the sale and interest revenue that Barua will record for the year ended December 31, 2018?

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The selling profit is the difference between the selling price and the carrying value, $704,000 - 560,000 = $144,000. The interest is calculated as follows: 11ea937b_35e4_835c_a419_637c0b3265cd_TB2599_00