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On January 1,2018, Princess Corporation leased equipment to King Company. The lease term is ten...

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Accounting

On January 1,2018, Princess Corporation leased equipment to King Company. The lease term is ten years. The first payment of $800,000 was made on January 1,2018. The equipment cost Princess Corporation $5,000,000. The present value of the lease payments is $5,407,200. 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 2019 on this lease?
Multiple Cholce
$426,792
$460,720.
$540,702
$339,280.
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