BM Corporation sold some inventory on may 1, 2023 with a value of $350,000 and a cost of $87,500. A cash down payment of $50,000 was made and the rest of the balance was payable in 4 instalments of $75,000 each year on May 1st start 2024. The purchase was arm's length. What would be the Net reported income for 2023 and 2024 assuming the company has a December 31st year end?

 a) Net reported income for 2023 and 2024 is $56,250 for both years 

B) Net reported income for 2023 is $37,500 and for 2024 is $56,250 

C) Net reported income for 2023 is $262,500 and for 2024 is zero 

D) Net reported income for 2023 is $70,313 and for 2024 is $79,687

Answer rating: 100% (QA)

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