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On January 1, 2018, Renee Corp., a lessor who has adopted ASC 842, entered into a...

On January 1, 2018, Renee Corp., a lessor who has adopted ASC 842, entered into a five-year lease for new equipment, which has a cost of $30,000. The lease requires annual payments of $8,000 and the lessee guarantees a residual value of $2,000. The first payment is due on Jan. 1, 2018 (subsequent payments are made on the first day of the respective year) and Renee’s implicit interest rate is 11%. Which of the following would appear on Renee’s Dec. 31, 2018 financial statements with respect to the lease (amounts rounded to the nearest dollar)? Gross profit of $4,006 Lease Receivable of $28,539 Unearned Interest Income of $2,283 Lease Receivable of $30,822

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