Business, 13.05.2021 18:00 whortonraijan

On January 2, 2021, Sunland, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $360000 starting at the beginning of the first year, with title passing to Sunland at the expiration of the lease. Sunland treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Sunland uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $2310357, based on implicit interest of 9%. Required:
In its 2021 income statement, what amount of interest expense should Orlole report from this lease transaction?

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On January 2, 2021, Sunland, Inc. signed a 10-year noncancelable lease for a heavy duty drill press....

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