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How much is the interest revenue

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Question - ABC Company leases out an equipment under direct finance lease. There is no residual value nor bargain purchase option. The entity wishes to earn 8% on a 5-year lease of equipment costing P3,234,000. First annual lease payment is payable immediately on the contract date on January 1, Year 1. How much is the interest revenue for Year 1?

Reference no: EM133073272

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