What is the amount of interest revenue

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Problem 1: Pro Co. leased equipment from Helium Company on July 1, 2018 for an 8-year period expiring June 30, 2026. Equal payments under the lease are P600,000 and are due on July 1 of each year. The first payment was made on July 1, 2018. The rate of interest contemplated by Pro and Helium is 10%. The cash selling price of the equipment is P3,520,000 and the cost of the equipment on Helium's accounting records is P2,800,000. The lease is appropriately recorded as sales-type lease. What is the amount of interest revenue that Helium should record for the year ended December 31, 2018?

Reference no: EM132784832

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