On January 1, 2023, GADI Inc. sold a large piece of equipment to a client for $1,363,000.
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On January 1, 2023, GADI Inc. sold a large piece of equipment to a client for $1,363,000. Rather than pay cash, the client issued a 4 year, zero-interest bearing promisory note with a face value of $1,475,400 (an implicit interest rate of 2%). The equipment originally cost $818,000 to produce. What amount of gross profit should GADI Inc. recognize for this sale on its 2023 income statement?
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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