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

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

Name: During 2009, URBAN Companysold 10 acres of prime commercialzoned land
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Description: During 2009, URBAN Companysold 10 acres of prime commercialzoned land to a builder for$5,000,000. The builder gaveURBAN a $1,000,000 downpayment and will pay the remainingbalance of $4,000,000 to URBAN in2010. URBAN purchased the landin 2002 for $2,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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