Sandhill Company leased equipment from Koenig Company on July 1, 2021, for an 8-year period expiring June 30, 2029. Equal annual payments under the lease are $796000 and are due on July 1 of each year. The first payment was made on July 1, 2021. The rate of interest contemplated by Sandhill and Koenig is 7%. The lease receivable before the first payment is $5086000 and the cost of the equipment on Koenigs accounting records was $4360000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Koenig, what is the amount of profit on the sale and the interest income that Koenig would record for the year ended December 31, 2021?

$0 and $0

$726000 and $150150

$726000 and $178010

$0 and $150150