during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the vehicle was 55 000, resulting in a gross profit of $65,000 The $120,000 sale price is to be paid four equal instalment on Dec. 31 in each of the years 2021 to 2024. Marvin's pre owned vehicles ltd. has a december 31 year end. Requirements. A. The amount of the reserve that can be deducted B. The net business income
during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the vehicle was 55 000, resulting in a gross profit of $65,000 The $120,000 sale price is to be paid four equal instalment on Dec. 31 in each of the years 2021 to 2024. Marvin's pre owned vehicles ltd. has a december 31 year end. Requirements. A. The amount of the reserve that can be deducted B. The net business income
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
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the vehicle was 55 000, resulting in a gross profit of $65,000
The $120,000 sale price is to be paid four equal instalment on Dec. 31 in each of the years 2021 to 2024. Marvin's pre owned vehicles ltd. has a december 31 year end.
Requirements.
A. The amount of the reserve that can be deducted
B. The net business income
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