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

question 42

Multiple Choice

On November 15, 2016, LaGrow Developers sold a parcel of land for $4,000,000. 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. Assuming that LaGrow uses the cost-recovery method, the company would recognize gross profit in 2016 of ________.

• A) $0
• B) $400,000
• C) $3,000,000
• D) $1,000,000

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Definitions:

Insomnia

A sleep disorder where an individual has difficulty falling asleep, staying asleep, or experiences non-restorative sleep.

REM Sleep

A phase of sleep characterized by rapid eye movements, low muscle tone, and vivid dreams; associated with brain activity similar to wakefulness.

Sleep Apnea

An ailment disrupting sleep by causing breathing to pause or become shallow during the night.

Temporary Cessations

Short breaks or interruptions in an activity or process.