What amount of interest revenue would omega record


Omega Company leased machinery to Suleiman Company on January 1, 2012, for a ten-year period expiring December 31, 2021. Equal annual payments under the lease are $150,000 and are due on July 1 of each year. The first payment was made on January 1, 2012. The rate of interest used by Omega and Suleiman is 9%. The cash selling price of the machinery is $1,050,000 and the cost of the machinery on Omega's accounting records was $930,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Omega, what amount of interest revenue would Omega record for the year ended December 31, 2012?

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Accounting Basics: What amount of interest revenue would omega record
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