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  • Benedict Company Leased Equipment To Mark Inc On January 1: Unlock Answers Here Solutiondone - Online

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    Benedict Company leased equipment to Mark Inc for an eight-year period beginning January 1, 2017. The lease requires Mark Inc to make eight annual payments of $600,000 to Benedict Company. Benedict Company recorded the lease as a sales-type lease, where they purchased the equipment for $3.2 million on December 29, 2016. The present value of the total lease payments was $3.52 million on January 1, 2017.

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    Benedict Company leased equipment to Mark Inc for an eight-year period beginning January 1, 2017. The lease requires Mark Inc to make eight annual payments of $600,000 to Benedict Company. Benedict Company recorded the lease as a sales-type lease, where they purchased the equipment for $3.2 million on December 29, 2016. The present value of the total lease payments was $3.52 million on January 1, 2017.

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    Benedict Company Leased Equipment To Mark Inc On January 1: Unlock Answers Here Solutiondone - Online

    Uploaded by

    trilocksp Singh
    Benedict Company leased equipment to Mark Inc for an eight-year period beginning January 1, 2017. The lease requires Mark Inc to make eight annual payments of $600,000 to Benedict Company. Benedict Company recorded the lease as a sales-type lease, where they purchased the equipment for $3.2 million on December 29, 2016. The present value of the total lease payments was $3.52 million on January 1, 2017.

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    Benedict Company leased equipment to Mark Inc on

    January 1
    Benedict Company leased equipment to Mark Inc on January 1

    Benedict Company leased equipment to Mark Inc. on January 1, 2017. The lease is for an
    eight-year period, expiring December 31, 2024. The first of eight equal annual payments of
    $600,000 was made on January 1, 2017. Benedict had purchased the equipment on December
    29, 2016, for $3,200,000. The lease is appropriately accounted for as a sales-type lease by
    Benedict. Assume that at January 1, 2017, the present value of all rental payments over the
    lease term discounted at a 10% interest rate was $3,520,000.
    Required:
    What amount of interest income should Benedict record in 2018 (the second year of the lease
    period) as a result of the lease?

    Benedict Company leased equipment to Mark Inc on January 1


    SOLUTION-- http://solutiondone.online/downloads/benedict-company-leased-equipment-to-
    mark-inc-on-january-1/

    Unlock answers here solutiondone.online

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