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22. On January 1, 2021, Princess Corporation leased equipment to King Company. The lease term...

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Accounting

22. On January 1, 2021, Princess Corporation leased equipment to King Company. The lease term is eight years. The first payment of $675,000 was made on January 1, 2021. The equipment cost Princess Corporation $3,600,000. The present value of the lease payments is $3,961,183. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, how much interest revenue will Princess record in 2022 on this lease?

A. $261,000. B. $328,615. C. $325,350. D. $293,980

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