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

question 45

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 2018 payment is received?

• A)$0
• B)$26 446
• C)$200 000
• D)$31 446

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Codes of Ethics

Guidelines designed to help professionals conduct business honestly and with integrity, usually set by professional organizations or individual companies.