Sandhill company, a dealer in machinery and equipment, leased equipment to sands, inc., on july 1, 2021. the lease is appropriately accounted for as a sales-type lease by sandhill and as a finance lease by sands. the lease is for a 10-year period (the useful life of the asset) expiring june 30, 2031. the first of 10 equal annual payments of $788000 was made on july 1, 2021. sandhill had purchased the equipment for $5050000 on january 1, 2021, and established a list selling price of $7000000 on the equipment. assume that the present value at july 1, 2021, of the rent payments over the lease term discounted at 8% (the appropriate interest rate) was $5800000.

required:
what is the amount of profit on the sale and the amount of interest revenue that sandhill should record for the year ended december 31, 2021?