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Un August 1, 2017, The Transformer Corp. sold an inventory to Avengers Corp IOf r 2,200,000. Terms of the sale : DP of P550,000 and

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Un August 1, 2017, The Transformer Corp. sold an inventory to Avengers Corp IOf r 2,200,000. Terms of the sale : DP of P550,000 and four annual installment of P412,500 due on August 1, 2018. The inventory costs 825,000. Compute for RGP in 2018. Installment Method Profit Realization Accrual Cost Recovery Method 343, 750 412, 500 0 137,500 b. 343, 750 550, 000 1,375,000 412,500 C. 601, 562 962, 500 1,375,000 0 d. 257, 813 412,500 0 137,500

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