n December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting or this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 020. Ignore interest charges. Rigsby has a December 31 year-end. t December 31, 2019, Rigsby would report in its balance sheet: Multiple Choice Cost of installment sales $1,778,400. Realized gross profit of $440,000. Realized gross profit of $501,600. Deferred gross profit of $501,600.
n December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting or this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 020. Ignore interest charges. Rigsby has a December 31 year-end. t December 31, 2019, Rigsby would report in its balance sheet: Multiple Choice Cost of installment sales $1,778,400. Realized gross profit of $440,000. Realized gross profit of $501,600. Deferred gross profit of $501,600.
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
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting
for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15,
2020. Ignore interest charges. Rigsby has a December 31 year-end.
At December 31, 2019, Rigsby would report in its balance sheet:
Multiple Choice
Cost of installment sales $1,778,400.
Realized gross profit of $440,000.
Realized gross profit of $501,600.
Deferred gross profit of $501,600.
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