Calculate the amount of profit that will be recognized

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Bingo Inc. sold property worth $500,000 and allowed the buyer to make the payment in installments. The cost of the property sold is $300,000. The first installment of $250,000 has been received in Year 1, while the rest of the payment is expected to be received in Year 2.

Problem 1: Calculate the amount of profit that will be recognized each year using the installment sales method and cost-recovery method.

Reference no: EM132787156

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