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02-11-2022
Business

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karla salons leased equipment from smith co. on july 1, 2021, in a finance lease. the present value of the lease payments discounted at 6% was $62,400. ten annual lease payments of $8,000 are due each year beginning july 1, 2021. smith co. had constructed the equipment recently for $53,000, and its retail fair value was $62,400. what amount of interest revenue from the lease should smith co. report in its december 31, 2021, income statement?

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