Table 17-1
in 2016, a Developer Sells Land For $\$ 800,000$

question 22

Multiple Choice

Table 17-1
In 2016, a developer sells land for $\$ 800,000$ . The cost of the land was $\$ 500,000$ . He receives a $\$ 200000$ down payment plus three instalments of $\$ 300,000$ , $\$ 200000$ and $\$ 100,000$ which will be paid in 2017, 2018 and 2019 . He uses the instalment method to record revenue. It is decided that $10 \%$ is the appropriate rate of interest.
-Refer to Table 17-1.What amount of profit will be recorded when the 2019 payment is received?

• A)$0
• B)$26 091
• C)$100 000
• D)$9 091

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Definitions:

Company B

Generally refers to a business entity or corporation engaged in commercial, industrial, or professional activities.