On November 15, 2016, LaGrow Developers Sold a Parcel of Land

question 45

Multiple Choice

On November 15, 2016, LaGrow Developers sold a parcel of land for $5,000,000. They had originally paid $3,600,000 for the land. The terms of the sale called for a $1,000,000 down payment, and the balance in two equal installments payable on November 15, 2017 and November 15, 2018. Disregard interest charges. LaGrow has a December 31 year-end. Refer to LaGrow Developers. Assume that LaGrow uses the installment sales method. The buyer defaulted on the note receivable after making the down payment. At the date of repossession, the land had a fair value of $4,000,000. What will be the gain or loss on repossession?

• A) $0 loss or gain
• B) $1,000,000 loss
• C) $1,000,000 gain
• D) 2,000,000 gain

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Definitions:

Crying

A vocal expression of distress, discomfort, or need, often used by infants as their primary means of communication.

Infant's Development

Refers to the physical, cognitive, emotional, and social growth that occurs in babies from birth to the end of infancy.

Types of Cries

distinct patterns of crying in infants and babies, often reflecting different needs, emotions, or states of discomfort.

Functionalist View

A perspective in sociology and psychology that analyzes society or the mind in terms of the roles or functions its components serve.