On June 11 of Last Year,Derrick Sold Land with a Cost

question 17

Multiple Choice

On June 11 of last year,Derrick sold land with a cost of $15,000 for $45,000.Derrick collected $20,000 last year and is scheduled to receive $5,000 each year for five years starting this year plus an acceptable rate of interest.Derrick receives the $5,000 installment required this year.Derrick's recognized gain this year is

• A)$0.
• B)$1,667.
• C)$3,333.
• D)$5,000.

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Definitions:

Mutually Exclusive

Situations or options that cannot occur or be chosen at the same time.

Projects

Specific tasks or programs undertaken to achieve a goal, often with a defined scope, timeline, and resources.

Average Accounting Return

A financial metric that calculates the average profits earned on investments relative to the book value of assets over a certain period.