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What is the amount of profit on the sale

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Question - CUPID Corporation leased equipment to a lessee on April 1, 2021 for an eight-year period expiring April 1, 2029. Equal payments under the lease are $600,000 and are due on April 1 of each year. The first payment was made on April 1, 2021. The list selling price of the equipment is $3,520,000 and the carrying amount is $2,800,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is 93,300,000. What is the amount of profit on the sale that should be reported for 2021?

Reference no: EM133079806

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