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  3. abc co. leased equipment from xyz co. on july 1, y

ABC Co. leased equipment from XYZ Co. on July 1, Year 1 under a lease...

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Accounting

ABC Co. leased equipment from XYZ Co. on July 1, Year 1 under a lease classified as finance. The present value of the lease payments discounted at 10% was $53,553. The lease includes seven annual payments of $10,000, due each July 1, beginning in year1. XYZ Co. has built that team at a cost of $52,000 and its market value is $53,553. How much interest income should XYZ Co. recognize in its statement of income and expense by the 31st of year 1? Or $10,000 Or $5,355 Or $4,355 Or $2,178

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