There are two questions in this post but I only need QUESTION 2 to be answered. Question 1 is needed to answer 2. PLEASE SHOW WORK. Q1. In the example given in class, calculate the gross profit realized in 2015 and 2016, respectively.
			2014	2015	2016
Installment sales			200000	250000	240000
Cost of installment sales			150000	190000	168000
Gross profit			50000	60000	72000
Rateof gross profit on sales			25%	24%	30%
Cash receipts
2014 sales			60000	100000	40,000
2015 sales				1000001	125000
2016 sales					80000
			50000	60000	72000
			200000	250000	240000
Q2. using the above example, For 2014 installment sales, calculate deferred gross profit realized in each year using the cost recovery method.
PLEASE SHOW WORK
			2014
Installment sales			200000
Cost of installment sales			150000
Gross profit			50000
Rateof gross profit on sales			25%
Cash receipts
2014 sales			60000
2015 sales
2016 sales
			50000
			200000