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:

Tick

A small arachnid that feeds on the blood of mammals, birds, and sometimes reptiles and amphibians, known for transmitting diseases such as Lyme disease.

Warts

Small, rough growths on the skin, typically caused by the human papillomavirus (HPV).

Causative Agent

A factor, often a microorganism, that causes disease.

Herpes Simplex Virus

A virus causing contagious sores, most often around the mouth (HSV-1) or on the genitals (HSV-2).