The cost of a property is estimated to be $ 3500 and the sales price is quoted
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Question:
The cost of a property is estimated to be $ 3500 and the sales price is quoted as $4500, An 18% downpayment is made by the buyer. the remainder is to be received over the period of 8 years. there is a doubt about buyers' ability to pay. how much profit should be recognized attributable to the downpayment if :
- the installment method is used
- the cost recovery method is used
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: