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Skor Co. leased equipment to Douglas Corp. on January 2, 2021 for an 8-year period...

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Accounting

Skor Co. leased equipment to Douglas Corp. on January 2, 2021 for an 8-year period expiring December 31, 2028. Equal payments under the lease are $600,000 and are due on January 2 of each year. The first payment was made on January 2, 2021. The cost of the equipment is $2,800,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is $3,300,000. What amount of net profit on the sale should Skor report for the year ended December 31, 2021? Select one: a. $720,000 b. $500,000 c. $90,000 d. $600,000 e. $2,800,000

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