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

question 10

Multiple Choice

On November 15, 2016, LaGrow Developers sold a parcel of land for $4,000,000. They had originally paid $3,000,000 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, in its December 31, 2017 balance sheet, the company would report ________.

• A) $500,000 net installment accounts receivable
• B) $3,000,000 net installment accounts receivable
• C) $1,500,000 net installment accounts receivable
• D) $2,000,000 net installment accounts receivable

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Definitions:

Pancreas

A glandular organ in the digestive and endocrine system of vertebrates, producing enzymes and hormones such as insulin to aid in digestion and blood sugar regulation.

Weight Gain

An increase in body weight. This can result from the accumulation of body fat, muscle mass, or fluid retention.

Insulin Levels

The concentration of insulin in the bloodstream, which is central in regulating carbohydrate and fat metabolism in the body.

Lateral Hypothalamus

An area of the brain that plays a critical role in the control of appetite and behavior related to food intake.