Use the Following Information for Questions 102 and 103

question 135

Multiple Choice

Use the following information for questions 102 and 103.
Coaster manufactures and sells logging equipment. Due to the nature of its business, Coaster is unable to reliably predict bad debts. During 2014, Coaster sold equipment costing $4,800,000 for $7,200,000. The terms of the sale were 20% down, with equal payments due quarterly over the next 3 years. All payments for 2014 were made on schedule. Round answers to two places.
-Assuming that Coaster uses the installment-sales method of accounting for its installment sales, what amount of realized gross profit will Coaster report in its income statement for the year ended December 31, 2014?

• A) $3,360,000
• B) $2,240,000
• C) $1,120,000
• D) $ 739,200

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Definitions:

Plasma

The liquid component of blood that carries cells and proteins throughout the body.

Connective Tissue Strength

The capacity of connective tissues, such as ligaments, tendons, and cartilage, to withstand tension and maintain the integrity of bodily structures.

Collagen

A protein that provides structure, strength, and elasticity to connective tissues like skin, ligaments, and tendons.

Connective Tissue

Tissue that supports, binds together, and protects tissues and organs of the body.