On january 1, 2020 Novek Inc. leases equipment to Born Inc. The equipment has a selling price of $100,000 a carrying value of $80,000, an economic life of 4 years and a lease term of 3 years. Novek expects to earn a return of 10% on the selling price of the equipment. There is a purchase option at the end of the lease of 10,000 that is likely to be exercised by Born. The annual lease payment is $33,809.39 with the first payment due immediately on january 1, 2020

What is the gross profit (if any) that Novek records on January 1, 2020?