Baker Company is a real estate developer that began operations on January 2, 2014. It appropriately uses

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Baker Company is a real estate developer that began operations on January 2, 2014. It appropriately uses the installment method of revenue recognition. Baker€™s sales are made on the basis of a 10% down payment with the balance payable over 30 years. Baker€™s gross profit percentage is 40%. Relevant information for Baker€™s first two years of operations follows:

Baker Company is a real estate developer that began operations

Required:
1. At December 31, 2014, Baker€™s deferred gross profit was how much?
2. Baker€™s realized gross profit for 2015 was howmuch?

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Related Book For  answer-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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