In 2010, Lake Would Recognize Realized Gross Profit Of

question 124

Multiple Choice

In 2010, Lake would recognize realized gross profit of:

• A)$ 0.
• B)$300,000.
• C)$310,000.
• D)$700,000.2008 sales: Cost = $450,000; $300,000 collected in each year 2008-2010.$300,000 of cost recovered in 2008, the other $150,000 of cost recovered in 2009, so $150,000 of gross profit recognized in 2009, leaving $300,000 recognized in 2010.2009 sales:
• Cost = $900,000; $500,000 collected in 2009, $400,000 collected in 2010.$500,000 of cost recovered in 2009, the other $400,000 of cost recovered in 2009, so $0 of gross profit recognized in 2010.Total: $300,000 + $0 = $300,000

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Definitions:

Ethical Problems

Moral dilemmas or issues that arise in a business or professional setting, requiring consideration of right and wrong conduct.

Exchange Relationship

Relationships where interactions are based on a balance of benefits and costs between the parties involved.

Servant Leadership

A leadership approach prioritizing serving others above all, setting it apart from conventional leadership that centers on the prosperity of the company or organization.

Qualities

Qualities are distinctive attributes or characteristics that determine the nature of something or someone.