What is the amount of income before income taxes


Arthur Company purchased a machine on January 1, 2009, for $1,440,000 for the purpose of leasing it. The machine is expected to have an 8-year life from date of purchase, no residual value, and be depreciated on the straight-line basis. On February 1, 2009, the machine was leased to Broom Company for a 3-year period ending January 31, 2012, at a monthly rental of $30,000. Additionally, Broom paid $72,000 to Arthur on February 1, 2009, as a lease bonus. What is the amount of income before income taxes that Arthur should report on this leased asset for the year ended December 31, 2009?

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Accounting Basics: What is the amount of income before income taxes
Reference No:- TGS080218

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