George Co. leased equipment to Shapiro Co. on July 1, 2014, and properly recorde

Question

George Co. leased equipment to Shapiro Co. on July 1, 2014, and properly recorded the sales-type lease at $64,682, the present value of the lease payments discounted at 8%. The first of five annual lease payments of $15,000 due at the beginning of each year of the lease term was received and recorded on July 3, 2014. George had purchased the equipment for $60,000. What amount related to the lease contract that George will report in 2014 income statement?

Answer

$8,432.

$6,669.

$4,764.

$0.

$8,432.

$6,669.

$4,764.

$0.

Explanation / Answer

$6,669.

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