A builder formed a construction company in September. After several months of effort, the company completed a residence at a total cost of $70000 and advertised it for sale. By 31 December, the company had received three offers: one of $78 000 cash; another of $83 000 to be paid in monthly instalments over 20 years at 10 percent annual interest; and another of $50 000 cash plus a residential lot worth $31 000. The builder decided to wait for a higher offer, which he seemed certain to get.

1. What was the amount of the construction company's revenue for the year?

2. How much were its expenses?

3. In what form, if any, were its assets on 31 December?

4. Taking each offer separately, assume the offers were accepted and calculate the amount of revenue and expense for the four-month period ended 31 December in each case. Assume that, for each situation, the sale was settled on 26 December.