Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 13, 2024

The amount of realized gain to be recognized in a tax year is equal to the gross profit multiplied by the ratio of payments received

The amount of realized gain to be recognized in a tax year is equal to the gross profit multiplied by the ratio of payments received in the current year divided by the total contract price.

• Recognize, as income, payments received multiplied by the gross profit percentage.

Step by Step Solution

★★★★★

3.55 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

It seems like youre referring to the method of recognizing gain on installment sales fo... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental and Nonprofit Accounting

Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi

10th edition

132751267, 978-0132751261

More Books

Students also viewed these Accounting questions

Question

★★★★★

Your client, Steven Kupka, a calendar year/cash method taxpayer, was involved in a number of transactions during the 2022 calendar year. For whatever reason, Mr. Kupka failed to seek your advice...

Answered: 1 week ago

Question

★★★★★

On 7-1-2022, Mr. Kupka acquired a warehouse in the Silver Terrace district ofSan Francisco for $4,333,000. He financed this by paying $1,083,250 andfinancing the remainder with a conventional...

Answered: 1 week ago

Question

★★★★★

Multiple Choice Select the best answer and place it on the line next to the question number: 1. Bud Lime has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. Bud...

Answered: 1 week ago

Question

★★★★★

To compute trend percents the analyst should: A. Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a...

Answered: 1 week ago

Question

★★★★★

(a) Give the empirical formula and structural formula for a cyclic ether containing four carbon atoms in the ring. (b) Write the structural formula for a straight-chain compound that is a structural...

Answered: 1 week ago

Question

★★★★★

Explain and illustrate the way in which a business may approach the strategic management process.

Answered: 1 week ago

Question

★★★★★

3. With complicated assignments, give students a sheet describing what to do, what resources are available, due dates, and so on. Older students should also be told your grading criteria.

Answered: 1 week ago

Question

★★★★★

Alina Sadofsky, who operates a small grocery store, has established the following policies with regard to the checkout cashiers: 1. Each cashier has his or her own cash drawer, to which no one else...

Answered: 1 week ago

Question

★★★★★

create T-accounts and balance sheet for the following question (this is one of several transactions) First quarter of 2017: The firm (1) sells the 200 standard mugs in inventory to a customer who...

Answered: 1 week ago

Question

★★★★★

A bond has a 10.5 percent coupon rate, 8 years left to maturity, makes annual interest payments and is currently selling for $1070. What is its YTM? Use the trial and error method. Answer- First try?...

Answered: 1 week ago

Question

★★★★★

B Remember to SAVE your work C D QUESTION 3-REVENUE VARIANCE ANALYSIS-Version C (25 marks) ABC Co. manufactures widgets and has the following operating Information for the past year: Product Line...

Answered: 1 week ago

Question

★★★★★

5. Use any method (including calculators!) to compute the following volumes. a) The region bounded by y = sin(x) and the lines y = 0, x = 0, and x = 2 rotated around the x-axis. b) The region bounded...

Answered: 1 week ago

Question

★★★★★

solve this problem by showing the manual calculation and choose the correct answer(mechanical vibrations) Find the natural frequencies of the system for k = 300 N/m, k2 = 500 N/m, k3 = 200 N/m, m = 2...

Answered: 1 week ago

Question

★★★★★

MegaHoldings Group, a significant conglomerate, and MiniFirm Ltd, its subsidiary, are involved in a financial transaction. Initially, on January 1, 2021, MegaHoldings Group issued bonds into the...

Answered: 1 week ago

Question

★★★★★

D Check out the figure below: 10. Annual rate of per capita GDP growth (%) 4 2 Z " Annual rate of population growth (%) What does the above graph imply about the relationship between income growth...

Answered: 1 week ago

Question

★★★★★

Suppose a zero-coupon, 8 year bond has a yield to maturity of 5% and a face value of $1,000. What is the price of the bond? (Keep 2 decimal places)

Answered: 1 week ago

Question

★★★★★

A. Select a recent issue (paper or online) of Report on Business Magazine, Canadian Business Magazine (online only), Bloomberg Businessweek, Fast Company, The Economist, or another business magazine....

Answered: 1 week ago

Question

★★★★★

What types of worksheet adjustments for governmental activities are needed to address the absence of GCA and GLTL from governmental fund financial statements?

Answered: 1 week ago

Question

★★★★★

Prepare all entries that a state or local government should make to record the following transactions and events. 1. A $2,500,000 term bond issue to finance construction of a new bridge was issued at...

Answered: 1 week ago

Question

★★★★★

Multiple Choice Questions Identify the best answer for each of the following: 1. Which of the following fund types is never to be included as part of governmental activities? a. Special Revenue b....

Answered: 1 week ago

Question

★★★★★

Each of the following is a means of increasing productivity. Discuss which groups in a society might oppose each one. a. A labour-saving invention that permits all goods to be manufactured with less...

Answered: 1 week ago

Question

★★★★★

This question relates to the material in the Appendix. The following table shows several methods of producing 500 rubber tires per day. There are two factors, labour and capital, with prices per unit...

Answered: 1 week ago

Question

★★★★★

The following table shows the marginal product of capital and labour for each of several methods of producing 1000 kilograms of flour per day. a. As we move from A to G, ate the production methods...

Answered: 1 week ago

Previous Question Next Question