Answers with solutions

1. What amount should be reported as total financial. revenue over the lease term? a. 450,000 b. 225,000 c. 500,000 d. 250,000 2. What amount should be reprted as interest income for the current year? a. 134,255 b. 170,500 c. 155,000 d. 220,000 3. What is the carrying amount of the lease receivable on December 31, 2021? a. 1,220,500 b. 1,500,000 c. 875,755 d. 750,000 4. What is the carrying amount of the current portion of the lease receivable on December 31,2021 ? a. 500,000 b. 365,745 c. 854,755 d. 354,755