the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An 18% downpayment is made b
Posted: Wed May 18, 2022 9:28 pm
the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An 18% downpayment is made by the buyer. he remainder is to be received over a period of 8 years. Furthermore, there is doubt about the buyer's ability to pay. How much profit should be recognized attributable to the downpayment if:
1) the installment method is used and
2) the cost recovery method is used
1) the installment method is used and
2) the cost recovery method is used