Question
On July 1, 2024, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,655,000. The book value of
On July 1, 2024, Apache Company, a real estate developer, sold a parcel of land to a construction company for $4,655,000. The book value of the land on Apache's books was $1,960,000. Terms of the sale required a down payment of $245,000 and 18 annual payments of $245,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2025.
How much revenue will Apache recognize for the sale (ignoring interest), assuming that it recognizes revenue at the point in time at which it transfers the land to the construction company?
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
