On january 1 2013 princess corporation leased equipment to

Reference no: EM13571251

On January 1, 2013, Princess Corporation leased equipment to King Company. The lease term is 10 years. The first payment of $728,000 was made on January 1, 2013. The equipment cost Princess Corporation $4,520,600. The present value of the minimum lease payments is $4,920,600. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, how much interest revenue will Princess record in 2014 on this lease? (Round your answer to the nearest dollar.)

Reference no: EM13571251

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