on january 1, 2018, lennox corporation purchased equipment for $100,000. lennox depreciated the equipment straight--line over 10 years with no residual value. what is the book value of the equipment on january 1, 2021?

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?