Sunland Company leased machinery to Stine Company on July 1, 2021, for a 10-year period expiring June 30, 2031. Equal annual payments under the lease are $244000 and are due on July 1 of each year. The first payment was made on July 1, 2021. The rate of interest used by Sunland and Stine is 10%. The lease receivable before the first payment is $1690000 and the cost of the machinery on Sunland's accounting records was $1490000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Sunland, what amount of interest revenue would Sunland record for the year ended December 31, 2021? O $72300 O $144600 0 $0 O $169000
Sunland Company leased machinery to Stine Company on July 1, 2021, for a 10-year period expiring June 30, 2031. Equal annual payments under the lease are $244000 and are due on July 1 of each year. The first payment was made on July 1, 2021. The rate of interest used by Sunland and Stine is 10%. The lease receivable before the first payment is $1690000 and the cost of the machinery on Sunland's accounting records was $1490000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Sunland, what amount of interest revenue would Sunland record for the year ended December 31, 2021? O $72300 O $144600 0 $0 O $169000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sunland Company leased machinery to Stine Company on July 1, 2021, for a 10-year period expiring June 30, 2031. Equal annual
payments under the lease are $244000 and are due on July 1 of each year. The first payment was made on July 1, 2021. The rate of
interest used by Sunland and Stine is 10%. The lease receivable before the first payment is $1690000 and the cost of the machinery on
Sunland's accounting records was $1490000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by
Sunland, what amount of interest revenue would Sunland record for the year ended December 31, 2021?
O $72300
O $144600
O $0
O $169000
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