Question: On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on

On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2012. Apache has no significant obligations to perform services after the sale. How much gross profit will Apache recognize in both 2011 and 2012 assuming point of delivery profit recognition?

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

2011 gross pr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

254-B-A-F-A (1022).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On July 1, 2018, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a...

On January 2, year 1, Randy sold a parcel of land that he held as an investment for a number of years. The land has a basis to Randy of $8,500. The buyer made a $6,000 down payment on the date of...

A pair of points is given. (0, 8), (3, 0) (b) Find the distance between them. (c) Find the midpoint of the segment that joins them. (x, y) = ------- Find an equation of the circle that satisfies the...

Refer to the situation described inBE 5-1. What should be the balance in the deferred gross profit account at the end of 2012 applying the installment sales method? In BE 5-1, On July 1, 2011, Apache...

Refer to the situation described in BE 5-35. How much gross profit will Apache recognize in both 2018 and 2019 applying the cost recovery method? In BE 5-35 On July 1, 2018, Apache Company sold a...

Refer to the situation described in BE 5-1. How much gross profit will Apache recognize in both 2011 and 2012 applying the cost recovery method? In BE 5-1, On July 1, 2011, Apache Company sold a...

On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apaches books was $1,200,000. Terms of the sale required a...

BE5-3 BE5-5 On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale...

On July 1, 2013, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apaches books was $1,200,000. Terms of the sale required a...

We see the constellations as distinct groups of stars. Discuss why they would look entirely different from some other location in the universe, far distant from Earth.

The production and home delivery of a pizza is a relatively straightforward and simple process. Develop a fishbone diagram to identify potential defects and opportunities for poor quality in this...

but also exceeds the buffer size and overwrites the subsequent strings such that the program prints "I owe you $ 2 0 0 0 " instead of $ 1 0 0 0 .

Under the Tokyo Round of trade negotiations, what were the major policies adopted concerning nontariff trade barriers? What about the Uruguay Round?

A lease might specify that rental payments may be increased (or decreased) at some future time during the lease term depending on whether or not some specified event occurs such as revenues or...

The lessor's initial direct costs often are substantial. What are initial direct costs?

show all steps please CHAPTER 11 In the presence of flotation costs, use the net proceeds in place of the market price Net Proceeds = Sale Price (1 Flotation cost % or Sale Price $ Flotation Costs...

Financing Deficit Stevens Textile's 2016 financial statements are shown below: a. Suppose 2017 sales are projected to increase by 20% over 2016 sales. Use the forecasted financial statement method to...

please add referencing Question 1 (Marks: 10) The Steinhoff saga, possibly the biggest case of corporate fraud in South African business history, has dominated financial and general news since the...