What is the gain on repossession

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Reference no: EM13132058

on july 10,2011 Toyota Motors ,inc sold a new car to Mr, Sy for P850 ,000 .The car costs Toyota P650,000 .Mr. Sy paid 25% cash downpayment and traded his old car .Toyota granted an allowance of P80,000 on the old car traded, the balance payable in equal monthly installment payments. The monthly installment amount to P30,000 inclusive of 12% interest on the unpaid balance of the principal amount of obligation .The old car traded in his selling price of P120,000 after expending reconditioning costs of P22,500.After paying three installment ,Mr. Sy suffered major financial setback incapacitating him to continue paying . The car was subsequently repossessed . When reacquired , the car was appraised to have a fair value of P300,000 , What is the gain (loss ) on repossession ? Under the installment method , how much is the realized gross profit to be recognized a the end of the year?

Reference no: EM13132058

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