In January 2023, Marty's Fine Pens, a business carried on as a sole proprietorship, sells a...

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In January 2023, Marty's Fine Pens, a business carried on as a sole proprietorship, sells a limited-edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of $50,000 in 2023, followed by 3 annual payments of $25,000 in the 2024, 2025, and 2026 fiscal periods. Required: Determine the amount of the reserve that can be claimed in each of the 2023 to 2026 fiscal periods. = Reserve (proceeds outstanding/Total proceeds) X Gross proceeds Use the editor to In January 2023, Marty's Fine Pens, a business carried on as a sole proprietorship, sells a limited-edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of $50,000 in 2023, followed by 3 annual payments of $25,000 in the 2024, 2025, and 2026 fiscal periods. Required: Determine the amount of the reserve that can be claimed in each of the 2023 to 2026 fiscal periods. = Reserve (proceeds outstanding/Total proceeds) X Gross proceeds Use the editor to

Answer rating: 100% (QA)

To calculate the amount of the reserve that can be claimed in each of the 2023 to 2026 fiscal periods we first need to determine the total proceeds from the sale and the portion of the proceeds outstanding at the end of each fiscal period ... View the full answer