Under the accrual method when do you report income from the sale of goods (a) Suppose you receive in Year 1 $100,000 for goods that cost you $40,000 What is your gross profit (b) Suppose title to 100 of the goods passes in Year 1, when do you report the income (c) What if title to 40 of the goods passes in Year 1 and 60 in Year 2 (d) Would your answer to the previous question change if you reported all $60,000 profit in Year 1 (e) Suppose title to 40 of the goods passes in Year 1 and 30 passes in Year 2, 20 passes in Year 3 and 10 in Year 4, and the financial reporting conforms with tax

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Question: Under the accrual method when do you report income from the sale of goods? (a) Suppose you receive in Year 1 $100,000 for goods that

Under the accrual method when do you report income from the sale of goods?

(a) Suppose you receive in Year 1 $100,000 for goods that cost you $40,000. What is your gross profit?

(b) Suppose title to 100% of the goods passes in Year 1, when do you report the income? .

(d) Would your answer to the previous question change if you reported all $60,000 profit in Year 1?

(e) Suppose title to 40% of the goods passes in Year 1 and 30% passes in Year 2, 20% passes in Year 3 and 10% in Year 4, and the financial reporting conforms with tax?

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