What amount of selling profit should butch realize

Reference no: EM132827070

Question: Butch Co. manufactures equipment that is sold or leased. On December 31, 2020, Butch leased equipment to Sparky for a 5-year period ending December 31, 2025, at which d ownership of the leased asset will be transferred to Sparky. Equal payments under the lease are $22,000 and are due on December 31 of each year. The first payment was made on December 31, 2020. The normal sales price of the equipment is $77,000, and cost is $60,000. For the year ended December 31, 2020,

what amount of selling profit should Butch realize from the lease transaction?

Reference no: EM132827070

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