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Posted on Jul 26, 2024

During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $10,000,000. The builder gave Argo a $2,000,000 down payment

During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $10,000,000. The builder gave Argo a $2,000,000 down payment and will pay the remaining balance of $8,000,000 to Argo in 2010. Argo purchased the land in 2002 for $4,000,000. Using the cost recovery method, how much profit will Argo report for 2009?

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