Use the Following Information for Questions 96-98

question 26

Multiple Choice

Use the following information for questions 96-98.
During 2014, Vaughn Corporation sold merchandise costing $2,250,000 on an installment basis for $3,000,000. The cash receipts related to these sales were collected as follows: 2014, $1,200,000; 2015, $1,050,000; 2016, $750,000.
-What amount would be shown in the December 31, 2015 financial statement for realized gross profit on 2014 installment sales, and deferred gross profit on 2014 installment sales, respectively?

• A) $262,500 and $562,500
• B) $487,500 and $262,500
• C) $562,500 and $187,500
• D) $262,500 and $187,500

---

Definitions:

Social Phenomena

Events, behaviors, or situations that occur or exist within society and are influenced by its collective individuals and cultures.

Historical Epoch

A specific period of time noted for its events, developments, or unique characteristics, within the context of history.

Rationally Addressed

Approached or dealt with through logical and well-thought-out reasoning.

Politics

The practice and theory of influencing other people on a global, national, or local level, encompassing the set of activities associated with making decisions in groups or other forms of power relations among individuals, such as the distribution of resources or status.