Question: Glade Company leases computer equipment to customers under direct financing

Glade Company leases computer equipment to customers under direct financing leases. The equipment has no residual value at the end of the lease term, and the leases do not contain bargain purchase options. Glade wishes to earn 8% interest on a five-year lease of equipment with a fair value of $323,400.

Required:
Compute the total amount of interest revenue that Glade will earn over the life of the lease.


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  • CreatedSeptember 10, 2014
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