Derozan Corp. manufactured equipment at a cost of $362,569 and leased it to B Corp. on January 1, 2019 for an eight-year period expiring December 31, 2026. Eight years is considered a major part of the assets economic life. Equal payments under the lease are $42,320 and are due on January 1 and July 1 of each year. The first payment was made on January 1, 2019. The implicit rate used by Derozan is 8%.

Additional information:

Present value of an annuity due of $1 for 8 periods at 8% 6.21

Present value of an annuity due of $1 for 16 periods at 4% 12.12

A) What amount of selling profit or loss should Derozan report for the year ended December 31, 2019?

B) What is the amount of interest revenue Derozan will recognize for the year ended December 31, 2019?

C) What is the amortization expense B will take for the year ended December 31, 2019?

D) What is the Debit to Lease receivable recorded by Derozan on January 1, 2019?