Kerry corp purchased a used bottling machine from bobs, Ask an Expert

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Kerry Corp purchased a used bottling machine from Bob's Bottling Inc. on Jan 1, 2012 for $900000. Bob accounted for the sale correctly under the installment sales method. It had a book value of $675000. Kerry paid with $300000 cash and a note for $600000 with an annual interest of 10%. Kerry agreed to make equal annual payments of $200000. Kerry Corp made their first payment on Jan 1, 2013 of $260000 which included interest of $60000 to date of payment. As of Dec 31, 2013 Bob has deferred gross profit of ?

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Accounting Basics, Accounting

Category:- Accounting Basics
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