Business, 22.04.2020 04:31, EnternalClipz
On January 1, 2017 Princess Corporation leased equipment to King Company. The lease is for 8 years. Equal payments of $675,000 were made annually, starting on January 1, 2017. The equipment cost Princess Corporation $3,600,000. The present value of the minimum lease payments is $3,960,000. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, how much interest revenue will Princess record for the year 2018 on this lease
Answers: 2
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On January 1, 2017 Princess Corporation leased equipment to King Company. The lease is for 8 years....
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