微信扫一扫
实时资讯全掌握
| A company has just completed the sale of a tract of land for ?3.5 million which was originally acquired at a cost of ?2.0 million. The purchaser made a down- payment of ?200,000 with the remainder to be paid in equal installments over the next 10 years. A short time after the sale, significant doubt arose about the purchaser’s ability to meet the future obligations for the land purchase. When compared to the cost recovery method of revenue recognition, the profit (in ?) that the company will recognize in the year of the sale under the installment method is most likely to be higher by: A:85,714. B:114,286. C:150,000. |
暂无解析 |