Use the Following Information for Questions 99 - 101

question 84

Multiple Choice

Use the following information for questions 99 - 101.
During 2014, Martin Corporation sold merchandise costing $3,500,000 on an installment basis for $5,000,000. The cash receipts related to these sales were collected as follows: 2014, $2,000,000; 2015, $1,750,000; 2016, $1,250,000.
-If expenses, other than the cost of the merchandise sold, related to the 2014 installment sales amounted to $200,000, by what amount would Martin's net income for 2014 increase as a result of installment sales?

• A) $1,800,000
• B) $ 600,000
• C) $ 450,000
• D) $ 400,000

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Definitions:

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