Use the Following Information for Questions

question 44

Multiple Choice

Use the following information for questions:
A corporation sold a tract of land for $525,000 that had originally cost $350,000.The buyer will make three annual payments of: $250,000; $125,000; and $150,000.Ignore interest and use the instalment method.
-The amount of gross profit recognized in the first year is:

• A)$0
• B)$58,333
• C)$83,333
• D)$175,000

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Definitions:

Manufacturer

An entity or individual that makes goods or products from raw materials through the use of labor, machinery, and equipment, typically within an industrial setting.

Promotional Strategy

A plan designed to inform, persuade, or remind potential customers about a business's products or services, aiming to increase sales and brand awareness.

Automobile Manufacturer

A company that designs, produces, and sells motor vehicles to the public.

Warranties

Guarantees issued by a manufacturer or seller to a consumer, promising repair or replacement of a product within a specified period.