On March 1, 20X5, Millwork sold an old delivery truck that it no longer needed and took a two-year note receivable for $10,850 from the customer, a friend of John. The note bears interest at 4%. The interest is to be paid annually on March 1. The market rate for the note is 8%. The book value of the truck sold was $7,400. Rob has recorded a gain on sale for $3,450.