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How much it the realized gross profit on installment sales

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Question - On November 1, 2019, Speed Motor, which maintains a perpetual inventory records sold a new automobile to Rapids for 6,800,000. The car costs 5,205,000. The buyer paid 30% and received 640,000 allowance on an old car traded, the balance is payable in equal monthly installment payments commencing the month of sale. The monthly amortization amounts to 240,000 inclusive of 12% interest on the unpaid amount of the obligation. The car traded in has a wholesale value of 960,000 after expending reconditioning costs of 180,000. After paying three installments, the buyer defaulted and the car was subsequently repossessed. When reacquired, the car was appraised to have a fair value of 2,400,000.

Required -

1. How much it the realized gross profit on installment sales during the year 2019?

2. What is the total net income?

Reference no: EM133154582

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