Richmond Car Company buys cars and sells them at a profit of 20% above cost...
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Richmond Car Company buys cars and sells them at a profit of 20% above cost On January 1, 20X0, Richmond purchased a vehicle for $40,000 and the customer is to make 6 annual payments of lease for $10,000 (assume including 10% interest). The vehicle has a useful life of 6 years and has no residual value. The first payment is made immediately. What is the increase in income (gross profit and interest) of Richmond for the year 20X0 as a result of this lease? Or $10,000 Or $11,200 $12,600 Or $11,800
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