Assume the following: Sales price and cost of a property are $ 3 , 0 0 0
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Question:
Assume the following: Sales price and cost of a property are $ and $ respectively, so that the total profit to be recognized is $ Seller received a down payment of $ cash, with the remainder of the sales price to be received over a year period. There is significant doubt about the ability and commitment of the buyer to complete all payments.
How much profit will be recognized attributable to the down payment if the cost recovery method is used in dollars
Related Book For
International Financial Statement Analysis CFA Institute Investment Series
ISBN: 9780470287668
1st Edition
Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie
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