21.2 Accounting for Finance Leases Byers Enterprises leased machinery to Carver Manufacturing on July 1, 2019, for a ten-year period expiring June 30, 2029. The terms of the lease agreement require equal annual payments of $120,000 on July 1 of each year, starting in 2019. The effective interest rate for the lease is 9% and the present value of an annuity due of 1 for 10 periods at 9% is 6.99525 whereas the prese value of an ordinary annuity of 1 for 10 periods at 9% is 6.41776. The cost of the machinery on Byers' accounting records was $820,000. If Byers properly records the lease as a sales-type lease for accounting purposes, what amount of interest revenue would Byers record for the year ended December 31, 2019? $69,301.01. $62,048.70 O$32,374.35 $37,774.35

21.2 Accounting for Finance Leases Byers Enterprises leased machinery to Carver Manufacturing on July 1, 2019, for a ten-year period expiring June 30, 2029. The terms of the lease agreement require equal annual payments of $120,000 on July 1 of each year, starting in 2019. The effective interest rate for the lease is 9% and the present value of an annuity due of 1 for 10 periods at 9% is 6.99525 whereas the prese value of an ordinary annuity of 1 for 10 periods at 9% is 6.41776. The cost of the machinery on Byers' accounting records was $820,000. If Byers properly records the lease as a sales-type lease for accounting purposes, what amount of interest revenue would Byers record for the year ended December 31, 2019? $69,301.01. $62,048.70 O$32,374.35 $37,774.35

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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