Blossom Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type...

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Blossom Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $141000, the present value of the lease payments discounted at 8%. The first of eight annual lease payments of $21500 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Blossom had purchased the equipment for $110000. What amount of interest revenue from the lease should Blossom report in its 2021 income statement? Blossom Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $141000, the present value of the lease payments discounted at 8%. The first of eight annual lease payments of $21500 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Blossom had purchased the equipment for $110000. What amount of interest revenue from the lease should Blossom report in its 2021 income statement?

Answer rating: 100% (QA)

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