Blossom Co, purchased a machine on January 1,2025, for $2,100,000 for the express purpose of...
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Blossom Co, purchased a machine on January 1,2025, for $2,100,000 for the express purpose of leasing it. The machine is expected to have a five-vear life. no salvage value, and be depreciated on a straight-line monthly basis On Aprit 1.2025 , Bloutrom leased the machine to Splish Compary for $780,000 a year for a four-year period ending March 31,2029 . Blossem incurred total maintenance and other related costs under the provisions of the lease of $29,000 relating to the year ended December 31, 2025. Harfer paid $780,000 to Blossom on April 1,2025. (a) Assuming an operating lease, what should be the income before income taxes derived by Blossom Co. from this lease for the year ended December 31,2025 ? Income before income taxes
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