Question: On January 1 , 2 0 2 4 , Princess Corporation leased equipment to King Company. The lease term is 1 0 years. The first

On January 1,2024, Princess Corporation leased equipment to King Company. The lease term is 10 years. The first payment of \(\$ 708,000\) was made on January 1,2024. The equipment cost Princess Corporation \(\$ 4,308,220\). The present value of the lease payments is \(\$ 4,628,230\). The lease is appropriately classified as a salestype lease. Assuming the interest rate for this lease is \(11\%\), how much interest revenue will Princess record in 2025 on this lease?
Note: Round your answer to the nearest whole dollar amount.
Multiple Choice
\$276,775
\$400,780
\$431,225
\$399,290
On January 1 , 2 0 2 4 , Princess Corporation

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