During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $5,000,000.
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During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $5,000,000. The builder gave Argo a $1,000,000 down payment and will pay the remaining balance of $4,000,000 to Argo in 2010. Argo purchased the land in 2002 for $2,000,000. Using the installment method, how much profit will Argo report for 2009?
A. $600,000.
B. $1,000,000.
C. $3,000,000.
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The installment method is a method of revenue recognition in which profit is recognized on the recei...View the full answer
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Related Book For 
International Financial Statement Analysis Workbook CFA Institute Investment Series
ISBN: 9781118999486
3rd Edition
Authors: Thomas R. Robinson, Elaine Henry, Wendy L. Pirie, Michael A. Broihahn
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