On january 1, year 1, sam co. entered into a contract with a customer to sell a machine for two annual payments of $144,049 starting at the end of year 1. the customer obtains control of the machine at contract inception. the cash selling price of the machine is $250,000. sam determined that (1) the contract includes a significant financing component and (2) the contract includes an implicit interest rate of 10%. what amounts of revenue and interest income from this contract, if any, were recognized by sam in year 2?

interest revenue 13,095.1

Explanation:

We will calcualte the loan interest:

first year

machine value x interest rate = interest revenue first year

250,000 x 10% = 25,000 interest revenue for the first year

cuota - interest = amortization

144,049 - 25,000 = 119.049‬ amortization

carrying value

250,000 - 119,049 = 130.951‬

second year

carrying value x interest

130,951 x 10% = 13,095.1 interest revenue for the second year

amortization

144,049 - 13,095.1 = 130.953,9

For the second year, the interest revenue will be of 13,095.1

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;