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Question 1: OHM sold a specialized machine for P 300,000 at a mark-up of 50% above cost. A trade-in was accepted as a down-payment and was allowed a trade-in value of P 50,000. The balance was payable in five semi-annual installments starting June 6, 2014. Ohm uses the installment method to account for the sale. Assuming that the trade-in has a fair value of P 70,000, compute the realized gross profit as of December 31, 2014.
a. P 28,570
b. P32,284
c. P37,500
d. P 45,000
arnold was employed during the first six months of the year and earned a 86000 salary. during the next 6 months he
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