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?

Answer rating: 100% (QA)

To calculate the gross profit we need to subtract the cost of goods sold COGS from revenue First we need to calculate the COGS The equipment originall... View the full answer