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Landshark, Inc. purchased land in 2012 at a cost of $1,500,000. The company sold the land to Tiger Corporation in 2018 for $3,750,000. At the
Landshark, Inc. purchased land in 2012 at a cost of $1,500,000. The company sold the land to Tiger Corporation in 2018 for $3,750,000. At the time of the sale, Tiger Corporation paid 750,000 and will pay the remaining amount over the next 10 years. How much profit would Landshark report at the time of sale if the company uses the installment method? O a None O b. $450,000 O c. $600,000 O d. $750,000 QUESTION 13 Wildcat, Inc. purchases a machine on January 1, 2016 at a cost of $750,000. The machine will be depreciated over a 5-year useful life by using the straight-line method. The managers estimate that the machine will have a salvage value of $4,167 at the end of its useful life. What is the machine's carrying amount at December 31, 2018? O a. $149,167 O b. $239,375 O c. $302,500 O d. $365,625 O e. $447,500 QUESTION 14 Spartan Corporation purchases a machine on January 1, 2017 at a cost of $800,000. The machine will be depreciated over a 7-year useful life by using the double-declining balance method. The managers estimate that the machine will have a salvage value of $50,00 at the end of its useful life. What is the machine's carrying amount at December 31, 2019? O a. $349,854 O b. $291,545 O c. $273,324 O d. $249,896 O e. $208,247
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