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Canarise Company leased equipment to Fulton Inc. on January 1, 2016. The lease is for...

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Accounting

Canarise Company leased equipment to Fulton Inc. on January 1, 2016. The lease is for an eight year period expiring December 1, 2016. Canarsie had purchased the equipment on December 29, 2015, 4,800,000. The lease is appropriately accounted for as a sales type lease by Canarsie. Assume that the present value at January 1, 2016, of all rent payments over the lease term discounted at a 10 percent interest rate was $5,280,000. What amount of interest revenue should Canarsie record in 2017 (the second year of lease period) as a result of the lease? (Show your work)

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