Velvet Co. uses the installment sales method. Relevant information follows: 20x1. 20x2 Sales. 300,000. 480,000 Cost of sales. 240,000. 336,000

Installment receivable - 20x1. 180,000. 60,000

Installment receivable - 20x2. 360,000

Velvet Co. repossessed a property that was sold in 20x1 for 50,000.

Total collections from this sale were 24,000.

Velvet Co. expects to resell the property for 30,000 after reconditioning costs of 4,000.

The normal profit margin on resale of repossessed property is 30%.

9. How much is the profit recognized in 20x2?

10. How much is the total realized gross profit in 20x2?

11. How much is the gain or loss on repossession?