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Question - During 2010, Martin Corporation sold merchandise costing $2,100,000 on an installment basis for $3,000,000. The cash receipts related to these sales were collected as follows: 2010, $1,200,000; 2011, $1,050,000; 2012, $750,000.
If expenses, other than the cost of the merchandise sold, related to the 2010 installment sales amounted to $120,000, by what amount would Martin's net income for 2010 increase as a result of installment sales?
$240,000
$360,000
$1,080,000
$270,000
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