How much interest revenue will oxley record

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Question: On January 1, 2016, Oxley Corporation leased equipment to Bells Company. The lease term is 12 years. The first payment of $706,000 was made on January 1, 2016. The equipment cost Oxley Corporation $5,110,500. The present value of the minimum lease payments is $5,510,500. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 9%, how much interest revenue will Oxley record in 2017 on this lease? (Round your answer to the nearest dollar.)

Reference no: EM132064776

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