(Answered) Question - mayer co leased equipment from lennon co on

Accounting

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?

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