AgriPro, a farm corporation, produced 20,000 bushels of corn in its first year of operations. During the year, it sold 15,000 bushels of the corn produced for $3.00 per bushel and collected 80% of the selling price on the corn sold; the balance is to be collected in equal amounts during each of the two following years. The local feed mill is quoting a year-end market price of $3.50 per bushel. Additional data for the first year are as follows:
Depreciation on equipment ................... $ 5,000
Other production costs (cash)—per bushel .............. 0.60
Miscellaneous administrative costs (cash) ............. 3,000
Selling and delivery costs (incurred and paid at time of sale), per bushel . 0.15
Dividends paid to stockholders during year ........... 10,000
Interest on borrowed money (1/2 paid in cash) ............ 8,000

AgriPro is enthusiastic about the accountant’s concept of matching product costs with revenues.

Required:
Compute net income under each of the following methods and determine the carrying (book) value of inventory and accounts receivable at the end of the first year of operation for each of these methods.
1. Recognize revenue when production is complete.
2. Recognize revenue at point of sale.
3. Recognize revenue on an installment (cash collection) basis.