Use
the information for Lai Corporation from BE20–11. Assume that the direct
financing lease was recorded at a present value of $175,000. Prepare Lai’s
December 31, 2011 entry to record interest.
Unearned Interest Income—Leases......... 10,753
Interest
Income—Leases.............. 10,753
[($175,000 – $40,584) X 8%]
