Technoid Inc

question 80

Multiple Choice

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million.

This noncancelable lease had the following terms:

• Lease payments: $2,466,754 semiannually; first payment at January 1, 2018;
remaining payments at June 30 and December 31 each year through June 30, 2022.
• Lease term: five years (10 semiannual payments) .
• No residual value; no purchase option.
• Economic life of equipment: five years.
• Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually.
• Fair value of the computers at January 1, 2018: $20 million.

-What is the interest revenue that Technoid would report for this lease in its 2018 income statement?

• A) $0.
• B) $1,673,820.
• C) $876,662.
• D) None of these answer choices is correct.

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Definitions:

Pediatrician's Attention

The focus or care provided by a pediatrician, a medical doctor specializing in the health and medical care of infants, children, and adolescents.

Secure Feeling

A sense of safety and confidence in one's emotional state and relationships, often developed through consistent and positive interactions.

Emotion Dismissing

A parenting approach that minimizes, ignores, or invalidates a child's emotional experiences.

Emotion Demeaning

Actions or words that degrade or belittle someone's feelings or emotional state.