Multiple Choice
Parlor Company manufactures equipment that they sell or lease.On December 31,2014,Parlor leased equipment to Liner Company for a five-year period after which ownership of the leased asset will be transferred to Liner.The lease calls for equal annual payments of $60,000,due on December 31 of each year.The first payment was made on December 31,2014.The normal sales price of the equipment is $320,000,and cost is $276,000.For the year ended December 31,2014,what amount of income should Parlor report from the lease transaction?
A) $10,000
B) $30,000
C) $44,000
D) $74,000
Correct Answer:
Verified
Correct Answer:
Verified
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