Correct the income statement below using the new information provided.

ORIGINAL INCOME STATEMENTS

If we recreate the journal entry that ZonTech made when it sold the stock to GreenSel, there was $2,900,000 dollar gain from the original $5,100,000-dollar investment. The sale of the stock created a $8,000,000-dollar cash inflow for ZonTech. Cash Flow - Sale to GreenSel Debit Credit $ 5,100,000.00 Cost of stock originally Sold Stock to Greensel $ 8,000,000.00 Gain of $ 2,900,000.00 The two companies agreed to sell the stock for $8,000,000.00 dollars but since Greensel was having cash flow problems, they agreed to a five-year payment plan with no interest added. But if we calculate the present value of the note receivable using a typical 15% interest rate, after five years Zontech would then be receiving $9,200,000.00 dollars from Greensel. Which is a $1,200,000.00 dollar gain on the transaction. The 15% interest charge to Greensel would have made ZonTech substantially more money over the five-year payment plan the two companies agreed on. 2004 $27,500 2003 $26,300 2002 $25,100 2001 $20,900 Net Revenues and Gains Expenses and Losses Cost of Sales Operating Expenses Other Taxes Net Income Common Shares Outstanding 15,200 3,160 4,570 1,690 $2,880 3,000 12,150 3,075 3,966 2,671 $4,438 3,000 9,845 2,890 3,146 3,318 $5,901 3,000 9,200 2,300 2,214 2,515 $4,671 3,000