Business, 15.02.2021 20:30 Savageman9509

Romanoff Company, a dealer in specialized surveillance equipment, leased equipment to Fury, Inc., on January 1, 2020. The lease is for a ten-year period, expiring January 1, 2030 and the equipment has a useful life of eleven years. The first of ten equal annual payments of $762,851 was made on January 1, 2020. There is no residual value on the equipment. Romanoff had purchased the equipment for $4,900,000 in December 2019. Assume that Romanoff uses a discount rate of 6%. The present value of an ordinary annuity of 1 for 9 years at 6% is 6.80169 The present value of an annuity due of 1 for 9 years at 6% is 7.20979 The present value of an ordinary annuity of 1 for 10 years at 6% is 7.36009 The present value of an annuity due of 1 for 10 years at 6% is 7.80169 The present value of an ordinary annuity of 1 for 11 years at 6% is 7.88687 The present value of an annuity due of 1 for 11 years at 6% is 8.36009 What amount of profit should Romanoff record for this sale?

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Romanoff Company, a dealer in specialized surveillance equipment, leased equipment to Fury, Inc., on...

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