Pharoah Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $133000, the present value of the lease payments discounted at 9%. The first of eight annual lease payments of $20000 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Pharoah had purchased the equipment for $114000. What amount of interest revenue from the lease should Pharoah report in its 2021 income statement?
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Pharoah Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type leas...
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