On January 1, 2018, Princess Corporation leased equipment to King Company. The lease term is...
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Accounting
On January 1, 2018, Princess Corporation leased equipment to King Company. The lease term is 11 years. The first payment of $694,000 was made on January 1, 2018. The equipment cost Princess Corporation $4,451,100. The present value of the lease payments is $4,781,100. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 11%, how much interest revenue will Princess record in 2019 on this lease?
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