Business, 02.07.2019 04:10 zavalaaria

Peg co. leased equipment from howe corp. on july 1, 2013, for an eight-year period expiring june 30,2021. equal payments under the lease are $600,000 and are due on july 1 of each year. the first payment was made on july 1, 2013. the rate of interest contemplated by peg and howe is 10%. the cash selling price of the equipment is $3,520,000, and the cost of the equipment on howe's accounting records is $2,800,000. the lease is appropriately recorded as a sales-type lease. what is the amount of profit on the sale and interest revenue that howe should record for the year ended december 31, 2013? profit on sale interest revenuea. $ 45,000 $146,000b. $ 45,000 $176,000c. $720,000 $146,000d. $720,000 $176,000

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Peg co. leased equipment from howe corp. on july 1, 2013, for an eight-year period expiring june 30,...

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