Repossession 2. Morning Co. uses the "installment sales method." Information on Morning's sales is as follows: Sales Cost of sales 20x1 20x2 150,000 240,000 120,000 168,000 90,000 30,000 180,000 Installment receivable - 20x1, Dec. 31 Installment receivable - 20x2, Dec. 31 In 20x2, Morning Co. repossessed a property that was sold in 20x1 for P25,000. Total collections from this sale were P12,000. Morning Co. expects to resell the property for P15,000 after reconditioning costs of P2,000. The normal profit margin from resale of repossessed inventory is 30%. Requirements: a. Compute for the gain or loss on repossession. b. Compute for the total realized gross profit in 20x2. c. Compute for the profit recognized in 20x2.