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Leto [7]
3 years ago
5

On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,500,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $450,000 with the balance in two equal annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end. In 2022, Rigsby would recognize realized gross profit of:
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

In 2022, Rigs-by gross profit=$682,500

Explanation:

Profit=Price at which land is sold- Actual price of land

Profit=$5,000,000- $3,500,000

Profit=$1,500,000

Gross Profit=Profit/Price at which land is sold

Gross Profit=$1,500,000/$5,000,000

Gross Profit=0.3=30%

In 2022, Rigs-by gross profit=Gross\ Profit*\frac{Price\ at\ which\ land\ is\ sold\ -\ down\ payment }{2}

In 2022, Rigs-by gross profit=0.3*\frac{\$5,000,000-\$450,000}{2}

In 2022, Rigs-by gross profit=$682,500

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Answer:

The correct answer is False.

Explanation:

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7 0
3 years ago
You recently started a new job working with databases. you receive training on maintaining the database from your boss, gregor.
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A database is an organized collection of structured information or data, usually stored electronically in a computer system. A database is typically controlled by a database management system (DBMS).

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6 0
1 year ago
Workplace diversity describes differences among workers in any of the following areas:
Andreyy89

Answer:salary

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Explanation:

6 0
3 years ago
The Pearsons decided to beautify their home by investing in a professional interior design. In the process, they dealt with empl
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There are a lot of ways to beautify the home. The people required to provide the landscaping services are considered  is <u>Inputs</u>.

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8 0
3 years ago
Sammy and Monica, both age 67, incur and pay medical expenses in excess of insurance reimbursements during the year as follows:
Mademuasel [1]

Answer:

The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

Explanation:

For the purpose of regular income tax, the deduction pertaining to medical expenses are available up to the extent it exceeds 10% of AGI.

Deduction available = excess expenses incurred - 7.5% of AGI

                                 = ($16,000  + 4,000  + 2,500 +5,000) - 7.5%*130000

                                  = 27500 - 9.750

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Therefore, The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

5 0
3 years ago
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