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Anibonita Company began operations in 2010. It sells goods on installment sales contracts; these transactions are considered to be exceptional, so it uses the installment method to recognize gross profit. The following is a summary of the installment sales, costs of installment sales, operating expenses, and collections for 2010 and 2011:
Required:Using the installment method to recognize gross profits, prepare 2010 and 2011 condensed income statements for the AnibonitaCompany.
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