Problem 5: The following selected accounts were taken from the trial balance of Romen Company as December 31, 2020: Accounts receivable 750,000 Installment receivable - 2018 150,000 Installment receivable - 2019 450,000 Installment receivable - 2020 2,700,000 Beginning inventory 525,000 Purchases 3,900,000 Freight-in 30,000 Repossessed merchandise @ NRV 150,000 Repossession loss 240,000 Cash sales 900,000 Credit sales 1,800,000 Installment sales 4,460,000 Deferred gross profit - 2018 222,000 Deferred gross profit - 2019 393,600 Operating expenses 150,000 Cost of installment sales 2,787,500 Additional information: a. Gross profit rate for 2018 and 2019 installment sales were 30% and 32%, respectively. b. The entry for repossessed goods was: Repossessed Merchandise 150,000 Repossession loss 240,000 Installment Receivable - 2018 180,000 Installment Received - 2019 210,000 c. Merchandise on hand at the end of 2020 (new and repossessed) was 282,000. Required: Compute for the following 1. Total realized gross profit in 2020. 2. Net income in 2020