Question: Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1 , 2 0 0 9 . The manufacturing cost of

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1,2009. The manufacturing cost of the computers was $12 million.
This non-cancelable lease had the following terms:
Lease payments: $2,466,754 semiannually; first payment at January 1,2009; remaining payments at June 30 and December 31 each year through June 30,2013.
Lease term: 5 years (10 semi-annual payments)
No residual value; no bargain purchase option
Economic life of equipment: 5 years
Implicit interest rate and lessee's incremental borrowing rate: 5% semi-annually
Fair value of the computers at January 1,2009: $20 million
Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred.
What is the interest revenue that Technoid would report on this lease in its 2009 income statement?
Group of answer choices
$0
$1,673,820
$876,882
None of these is correct.

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