Income recognition. Demski Company acquired used trucks costing \(\$ 125,000\) from various sources. It incurred \(\$ 8,000\) in costs to prepare the trucks for sale. It then sold these trucks to Gator Corporation. Delivery costs paid by Demski Company totaled \(\$ 6,000\). Gator Corporation had agreed to pay \(\$ 150,000\) cash for these trucks. Finding itself short of cash, however, Gator Corporation offered some of its bonds to Demski Company. The bonds have a face value of \(\$ 160,000\), mature in five years, and promise 8 percent interest per year. At the time Gator Corporation made the offer it could have sold the bonds in public bond markets for \(\$ 147,000\).

Demski Company accepted the offer and held the bonds for three years. During the three years, it received interest payments of \(\$ 12,800\) per year, or \(\$ 38,400\) total. At the end of the third year, Demski Company sold the bonds for \(\$ 153,000\).

a. What profit or loss did Demski Company recognize at the time of the sale of trucks to Gator Corporation?

b. What profit or loss would Demski Company have recognized at the time of the sale of trucks if it had sold the bonds for \(\$ 147,000\) immediately on receiving them?

c. What profit or loss would Demski Company have recognized at the time of the sale of trucks if it had held the bonds to maturity, receiving \(\$ 12,800\) each year for five years and \(\$ 160,000\) at the time the bonds matured?