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What is the amount of interest income

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Question - AFA Ltd. is a lessor that reports under ASPE and has a December 31, 20X1 year-end. Commencing January 1, 20X1, the company has agreed to lease equipment to a customer that has a fair value of $76,000 and a carrying amount of $61,000. The lease term is for 3 years with payments of $6,600 due on the first day of each quarter. The implicit interest rate is 8% and the equipment has an unguaranteed residual value of $6,096.

Required -

1: What is the amount of interest income that the company will record in the first quarter of 20X1?

2: What is the amount of sales revenue that the company will record at the inception of the lease?

Reference no: EM132892637

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