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What is the amount of profit of the sale

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Question - Mayer Co. leased equipment from Lennon Co. on 7/1/2010 for an 8 yr period expiring 6/30/2018. Equal annual payments of $300,000 are due July 1 of each yr. 8% interest rate; selling price $1,861,875; cost 1,600,000.

Assuming that the lease is recorded as sale what is the amt of profit of the sale and the interest income Lennon would record for Dec. 13, 2010?

Reference no: EM131788268

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