Carson Distributing,which Began Operating on January 1,appropriately Uses the Installment

question 45

Multiple Choice

Carson Distributing,which began operating on January 1,appropriately uses the installment method of accounting.The following information pertains to Carson's operations for the first year:

The balance in the deferred gross profit account at December 31 should be

• A)$400,000.
• B)$320,000.
• C)$240,000.
• D)$200,000.

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Definitions:

Passive Solar System

A design approach that utilizes the sun's energy for the heating and cooling of living spaces by exposure to the sun.

Earth Tubes

Underground pipes used to tap into the thermal stability of the earth for heating, cooling, and ventilating buildings, utilizing passive geothermal energy.

Warm Weather

Conditions characterized by higher temperatures, often leading to changes in ecosystems, human behavior, and the spread of diseases.

Coniferous Trees

A category of trees that have needle-like leaves and bear cones, commonly found in cooler areas and known for their wood and resin products.