Question: Massey Ltd an equipment manufacturer sold and delivered a piece
Massey Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $100,000, with 50% payable in one year and the remaining 50% payable in two years from the date of sale. Massey estimates that the interest rate for a similar financing arrangement would be 12%. Calculate the amount of revenue that Massey should recognize on the date of sale.
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