optionsHomework Answers
Answer: d.$12,400
Calculations:
| Initial lease receivable | $144,000 |
| (Less): First lease receipt | ($20,000) |
| lease receivable at after first lease receipt | $124,000 |
| x Interest rate | 10% |
| = Interest revenue at the of the first year | $12,400 |
Thus, Option d is correct and remaining options are incorrect.
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