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:

Proper Notice

Adequate information or warning provided in advance, as required by law or agreement, to enable appropriate response or action.

Personal Services

Services provided directly to individuals based on personal skill or expertise, such as legal advice, medical treatment, or personal grooming.

Rendering

The process of generating a photorealistic or non-photorealistic image from a 2D or 3D model through computer software.

Unconditional Assignment

The transfer of all rights and interests in a piece of property or contract to another party without any conditions.