During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $5,000,000. Th e builder gave Argo a $1,000,000 down payment and will pay the remaining balance of $4,000,000 to Argo in 2010. Argo purchased the land in 2002 for $2,000,000. Using the installment method, how much profi t will Argo report for 2009? B . $1,000,000.

During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $5,000,000. Th e builder gave Argo a $1,000,000 down payment and will pay the remaining balance of $4,000,000 to Argo in 2010. Argo purchased the land in 2002 for $2,000,000. Using the installment method, how much profi t will Argo report for 2009? B . $1,000,000.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 43P

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