Ebay manufactures from XY products from a process that yields a by-product called LAN. The by-product requires additional processing cost of $30,000. The by-product will require selling and administrative expenses totaling $20,000. It is Ebay's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2019 follows:

WAN

Units produced: 100,000 Market Value at SOP: $50 Unit Sold 60,000

LAN

Units produced: 8,000 Market Value at SOP: $10 Unit Sold: 8,000

The joint cost incurred up to split off point are:

Direct materials $2,000,000 Direct Labor $ 800,000 Factory Overhead $200,000

The selling and administrative expenses of Ebay for the year ended December 31, 2019 is $1,000,000 exclusive of that for the by-product.

What is the gross profit for the year if the net revenue from by-product is presented as the additional sales revenue?

What is the gross profit for the year if the net revenue from by-product is presented as other income?