Compute the amount of gross profit realized each year, Ask an Expert

Accounting

On January 1, 2007, Barkly Company sold property for $200,000. The note will be collected as follows: $100,000 in 2007, $60,000 in 2008, and
$40,000 in 2009. The property had cost Barkly $150,000 when it was purchased in 2005.

Instructions

a) Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery method.

b) Compute the amount of gross profit realized each year, assuming Barkly uses the installmentsales method.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9439313

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