Terras, Inc., leased equipment to Venture Company on January 1, 20X4. The lease is a direct financing lease for a five-year period ending January 1, 20X9. The first annual payments of $1,200,000 was made on January 1, 20X4. The cash selling price of the equipment is $5,174,552, which is equal to the present value of the lease payments at 8%. Terras purchased the equipment for $4,300,000. On December 31, 20X4, What is the Terras should report interest revenue?

Answer rating: 100% (QA)

To calculate the interest revenue that Terras Inc should report on December 31 20X4 in relation to t... View the full answer