Table 17-1
In 2016, a developer sells land for $ \$ 800,000 $. The cost of the land was $ \$ 500,000 $. He receives a $ \$ 200000 $ down payment plus three instalments of $ \$ 300,000 $, $ \$ 200000 $ and $ \$ 100,000 $ which will be paid in 2017, 2018 and 2019 . He uses the instalment method to record revenue. It is decided that $ 10 \% $ is the appropriate rate of interest.
-Refer to Table 17-1.What amount of profit will be recorded when the 2018 payment is received?
A)$0
B)$26 446
C)$200 000
D)$31 446

Question

Table 17-1
 In 2016, a developer sells land for $ \$ 800,000 $. The cost of the land was $ \$ 500,000 $. He receives a $ \$ 200000 $ down payment plus three instalments of $ \$ 300,000 $, $ \$ 200000 $ and $ \$ 100,000 $ which will be paid in 2017, 2018 and 2019 . He uses the instalment method to record revenue. It is decided that $ 10 \% $ is the appropriate rate of interest.
-Refer to Table 17-1.What amount of profit will be recorded when the 2018 payment is received?
A)$0
B)$26 446
C)$200 000
D)$31 446

Quizplus · Accepted Answer

The Answer of Table 17-1
 In 2016, a developer sells land for $ \$ 800,000 $. The cost of the land was $ \$ 500,000 $. He receives a $ \$ 200000 $ down payment plus three instalments of $ \$ 300,000 $, $ \$ 200000 $ and $ \$ 100,000 $ which will be paid in 2017, 2018 and 2019 . He uses the instalment method to record revenue. It is decided that $ 10 \% $ is the appropriate rate of interest.
-Refer to Table 17-1.What amount of profit will be recorded when the 2018 payment is received?
A)$0
B)$26 446
C)$200 000
D)$31 446

Table 17-1 in 2016, a Developer Sells Land For $800,000 \$ 800,000 $800,000

Table 17-1
in 2016, a Developer Sells Land For $\$ 800,000$