what total amount of revenue should mill recognize from the construction equipment s 603347
On December 31, 2005, Mill Co. sold construction equipment to Drew, Inc. for $1,800,000. The equipment had a carrying amount of $1,200,000. Drew paid $300,000 cash on December 31, 2005, and signed a $1,500,000 note bearing interest at 10%, payable in five annual installments of $300,000. Mill appropriately accounts for the sale under the installment method. On December 31, 2006, Drew paid $300,000 principal and $150,000 interest. For the year ended December 31, 2006, what total amount of revenue should Mill recognize from the construction equipment sale and financing?