On January 2, 20Y2, General Motors (GM) sold a Yukon Denali to a customer in exchange for a five-year, $70,000 face value note as payment. 3% interest is due each December 31 for the duration of the note. The customers market rate of borrowing was 5%. This specific car model has a cost of $55,000. REQUIRED Answer the following questions regarding the sale. Round all amounts to the nearest whole dollar.

3. What is the gross profit on the date of sale of inventory? 4. How does this transaction affect General Motor's balance sheet on the date of the sale? Please include account names, dollar values, and whether the account increased (I) or decreased (D)