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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 3,300,000.

Required - What is the amount of profit on the sale that should be reported for 2021?

Reference no: EM133085596

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