Ivanhoe Co. purchased a machine on January 1, 2021, for $2,000,000 for the express purpose...
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Ivanhoe Co. purchased a machine on January 1, 2021, for $2,000,000 for the express purpose of leasing it. The machine is expected to have a 5-year life, no salvage value, and be depreciated on a straight-line monthly basis. On April 1, 2021, under a cancelable lease. Ivanhoe leased the machine to Concord Company for $760,000 a year for a 4-year period ending March 31, 2025. Ivanhoe incurred total maintenance and other related costs under the provisions of the lease of $27,000 relating to the year ended December 31, 2021. Concord paid $760,000 to Ivanhoe on April 1, 2021. (a) Assuming an operating lease. what should be the income before income taxes derived by Ivanhoe Co. from this lease for the year ended December 31, 2021? Income before income taxes S $
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