the following three questions apply to the Folio Corp. Folio Corp. sold a paper machine to Library Inc. on January 1,2004,Th on January 1,2004. The sale pric of the mcie payments at the end of each year, beginning with 2004, of Sl.2618mike S 1,261,883 when discounted at 10% have a present value of S4,000 000 e at pay tsof 883 each. The four An amortization tatla appears below Repay Note Re Interest Note Rec. Revenue Cash Pmt of Prine 31-Dec Year Jan. 1 at 10% Reed 2004 2005 2006 2007 si,261.883-s861.883-s3,138 117 400,000 313,812 261,883 948,071 2,190,046 219,005 114.716 1261,883 1,147,168 $ $4,000,000 3,138,117 2,190,046 147,68 1,261,883 1,042,878 1,147,168 $1,047,532 $5,047,532 $4,000,000 6. If Folio Corp is uncertain that it will collect all four payments from Library Inc. and e the installment method of accounting for revenue recognition what amount of groas profit should Folio recognize in 2004 from the sale? a. $172,377 b. $0 c. S 861,242 d. $800,000 7. If Foio Corp.is absolutely certain that it will collect all four payments from Libny lac What amount of gross profit should Folio recognize in 2004 from the sale? a. $ 800,000 b. $ 861,883 c. S 172,377 d. $0 8. I f Folio Corp. is uncertain that it will collect all four payments from the cost-recovery- first method of aecounting for revenue recognition w profit should Folio recognize in 2005 from the sale? r revenue recognition what amount of gross a, $800,000 b. $861,883 c $112,377