What amount should Vanderbilt Company report as gross profit on sale in 2013?

(For questions 28-30) Vanderbilt Company is a dealer in machinery. On January 1, 2013, machinery was leased to another entity with the following provisions: Annual rental payable at the end of each year 3,000,000 Lease term and useful life of machinery Cost of machinery 8,000,000 Residual value - unguaranteed 1,000,000 Implicit interest rate 12% PV of an ordinary annuity of 1 for 5 periods at 12% 3.60 PV of 1 for 5 periods at 12% 0.57 5 years At the end of the lease term on December 31, 2017, the machinery will revert to Vanderbilt. Vanderbilt incurred initial direct cost of P300,000 in finalizing the lease agreement