How much gross profit will apache recognize

Assignment Help Accounting Basics
Reference no: EM131891352

Problem

On July 1, 2016, Apache Company sold a parcel of undeveloped land to a construction company for $4,700,000. The book value of the land on Apache's books was $1,880,000. Terms of the sale required a down payment of $470,000 and 9 annual payments of $470,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2017. Apache has no significant obligations to perform services after the sale. How much gross profit will Apache recognize in both 2016 and 2017 applying the installment sales method? Need the Gross Profit for 2016 and 2017.

Reference no: EM131891352

Questions Cloud

Read about facebook beacon controversy : Read about Facebook Beacon controversy and the "Anonymous" hacking controversy. which of the two cases poses the greatest threat
Prepare the december journal entries to record the receipt : Prepare the December 31 journal entries to record the receipt of the interest and the receipt of the dividends.
How many pools can the company install in summer : A swimming pool company has 120,000 labor hours available per summer and with a labor productivity of 8 pools per 5,000 hours.
Demonstrate an absence of autonomy and what harm resulted : Give two examples that demonstrate an absence of autonomy and what harm resulted? Had there been a higher degree of autonomy
How much gross profit will apache recognize : On July 1, 2016, Apache Company sold a parcel. How much gross profit will Apache recognize in both 2016 and 2017 applying the installment sales method?
Potential consequences to the ethical dilemma : Identify outcomes and potenIdentify outcomes and potential conseqtial consequences to the ethical dilemma. Evaluate frameworks and tools to resolve the dilemma.
Identify some of the services sysco provides : Sysco Corporation is a large distributor of food and food-related products to the food-service industry. The company provides its products and services.
Describe the key components of the aca : Identify a credible, professional source of information regarding the Affordable Care Act.
What are the advantages and disadvantages of operating : What are the advantages and disadvantages of operating both a traditional retail location and an online store? Use examples to support your discussion.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute grant average borrowing rate

Compute Grant's average borrowing rate. Assuming that Grant's dividend will last into perpetuity what cost of equity capital is inferred by current stock price

  Stakeholders impacted by audit reports

Determine the stakeholders impacted by audit reports. Analyze the impct of audit reports for each category of stakeholders.

  Swanson amp hiller inc purchased a new machine on september

swanson amp hiller inc. purchased a new machine on september 1 2008 at a cost of 118000. the machines estimated useful

  Question regarding the bond nominal yield to call

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in5 years at a price of $1,120. What is ..

  Discuss show positive cash flows but be in grave trouble

Is it possible for a company to show positive cash flows but be in grave trouble

  Why are bank reconcilations so important

On February 5, 2010, Tropical Connection Company, a garden retailer, purchased $25,000 of seed, terms 2/10, n/30, from Midwest Seed Co. Even though the discount period had expired, Lydia DeLay subtracted the discount of $500 when she processed the..

  Compare the proposal with covering yen payments

Using the following quotes and estimated cost of capital for Numata, Bush will compare the proposal with covering yen payments with forward contracts.

  How can managerial accounting information be useful

How can managerial accounting information be useful to John as he thinks about growing his out-of-state business

  Prepare the bank reconciliation for fsafsa

The bank statement includes donation of $800 electronically deposited to the bank for FSA and Prepare the bank reconciliation for FSAFSA

  Treasury bills was 476 the average inflation rate was 297

during the period 1984 to 2008 the average yield on 3-month u.s. treasury bills was 4.76 the average inflation rate was

  How many potential irrs exist for the project

Consider a mining project in which there are costs to open the mine and to seal the mine at the end of the project. Consider the following cash flows.

  What is the new equipment recorded at

Equipment costing $10,000 with accumulated depreciation of $7500 is traded for equipment priced at 17,000, minus a trade in allowance of 2,000. What is the new equipment recorded at?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd