On January 1, 2024, XYZ Corporation sold equipment that had a cost of $400,000 and accumulated depreciation of $290,000 to ABC. XYZ received as consideration a down payment of $90,000 and a $140,000 non-interest bearing note due on December 31, 2027. The prevailing rate of interest for a note of this type on January 1, 2024, was 4%.

3.) What is the total interest revenue that would be recognized over the life of the note by XYZ?

4.) Gross profit recognized for this transaction by the seller is $?

SHOW ALL WORK

1.) Prepare the journal entry to record XYZZ Cois sale of equipment on 01/01/24. 2) Prepare the journal entry(s) for year ended 12/31/25 (i.e, end of the second year), If any, associated with this sale of equipment