bugoze limited bought for cash 25 acres of land at a cost of $215,000 during the year.
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bugoze limited bought for cash 25 acres of land at a cost of $215,000 during the year. About two months later the land was sold to a developer for $ 500,000 consisting of a $ 220,000 down payment in cash and a note without interest due in one year for the balance. A real estate commission of $ 25, 000 was paid. The company often engages in this type of transaction.
Required: Compute the minimum net income for the company in the year of sale and the next year in respect of this transaction.
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073398242
11th edition
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
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