Question: On dantary 1 . 2 0 2 4 . KAT Corporation leased equipment to PRIM Company. The lease term is 8 years. The first payment

On dantary 1.2024. KAT Corporation leased equipment to PRIM Company. The lease term is 8 years. The first payment of $730,000- wass made on anulary 1.2024. The equipment cost KAT Compration $4,190,030. The preserif value of the lease payments is 1,530,650. The ledse is approprialely classified as a sales-type lease
Assuming the interest rate for this lease is 3%, how much interest revencre will Kat record in 2025 on this lease? Round your answer to the nearest swhole dollar amount.
$267425
$304,052
$290,598
$269,976
On dantary 1.2024. KAT Corporation leased equipment to PRIM Company. The

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The costs that ( a ) are associated directly with consummating a lease, ( b ) are essential to acquire the lease, and ( c ) would not have been incurred had the lease agreement not occurred, are...

Q:

On January 1, Year 1, Savor Corporation leased equipment toSpree Company. The lease term is 9 years. The first payment of$698,000 was made on January 1, Year 1. The present value of thelease paymen 2...

Q:

3. Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the...

Q:

1. On January 1, 2011, Princess Corporation leased equipment to King Company. The lease term is 8 years. The first payment of $675,000 was made on January 1, 2011. The equipment cost Princess...

Q:

1. On January 1, 2011, Princess Corporation leased equipment to King Company. The lease term is 8 years. The first payment of $675,000 was made on January 1, 2011. The equipment cost Princess...

Q:

1 . On June 3 0 , 2 0 2 4 , Moran Corporation issued $ 9 . 0 million of its 1 2 % bonds for $ 8 . 2 million. The bonds were priced to yield 1 4 % . The bonds are dated June 3 0 , 2 0 2 4 . Interest...

Q:

4. On January 1, Leveler Corporation leased equipment to Messy Company. The present value of the lease payments is $200,000 and Levelers cost of the equipment was $125,000. The lease is properly...

Q:

On January 1, 2020, Cap Corporation leased equipment to Kat Company. The lease term is eight years. The first payment of $450,000 was made on January 1, 2020. Remaining payments are made on December...

Q:

On January 1, 2024, Princess Corporation leased equipment to King Company. The lease term is 9 years. The first payment of $718,000 was made on January 1,2024 . The equipment cost Princess...

Q:

On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,000 was made on January 1, 2018. The present value of the lease...

Q:

Headquartered in Bella Vista, Australia, Woolworths Limited is the largest retail company in Australia and New Zealand and the largest food retailer in both countries. The largest division is...

Q:

The observations in the table are dissolved oxygen contents in water. The higher the dissolved oxygen content, the greater the ability of a river, lake, or stream to support aquatic life. In this...

Q:

2 a Construct this triangle. b Measure the shortest side. 45 12cm 35

Q:

Skills necessary for success in marketing include Multiple select question. analytical thinking advertising industry experience infallibility ability to work with others

Q:

=+2. What key things should you note when applying for a social media position?

Q:

=+5. Identify the differences between a social media community manager, a social media strategist, and a social media manager.

Q:

=+2. You have been asked to apply for a position at BuzzFeed. The hiring managers are looking for not only a cover letter, but a few pieces of content you have produced on social media. Create a post...