Answer:
$153,000
Explanation:
Under an installment sales method, the seller defers the recognition of gross profit on sale arising out of a transaction, unless money is actually received for such a transaction.
Rate of profit earned by Rigsby Sales Co. for sale of tract of land
= Sales proceeds - Cost
= $5,000,000 - $3,300,000
= $17,00,000
Rate of profit earned = 
= 
= 34%
Money received during current year i.e 2021 =
Down payment of $450,000
Thus, the revenue to be recognized and to be reported as per installment sales method for year ending on Dec 31, 2021 would be,
= Rate of profit earned on the transaction × Receipts during the period
= 34% × $450,000
= $153,000
Answer:
The incorrect statement regarding relevant costs and revenues:
To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.
Explanation:
For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time. It must also differ between the options available for decision making. A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided. This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.
Given that <span>Dave Klein is a produce farmer in Northern California. His major customers
are grocery stores in the midwest. Dave's product is a perishable item
and will only last for about 2 weeks after it has been picked, so Dave
is concerned with getting his product to his customers quickly. he ships
almost daily when his produce is in season. However, he also needs to
be aware of the cost of shipping.
The form of shipping Dave will most
likely use is truck.</span>
Based on the fact that Snowpeak Ski Resort offers prices for lifts that are barely over their marginal cost but still make profits from high equipment rental, the pricing strategy in use is Cross-subsidization.
<h3>What is Cross-subsidization?</h3>
This is a pricing strategy that allows a company to charge one group of customers a higher amount for goods sold or services rendered while charging another group of customers a lower amount for other goods and services.
The logic is that the profits from the higher priced goods will take care of the marginal profits from the smaller cost goods and services.
Companies do this because they know that there are services that they can offer that will be easier to sell to people at a higher cost than a lower one. This is what Snowpeak Ski Resort is doing by using the rental fee of equipment to make profits.
Find out more on Cross-subsidization at brainly.com/question/6886629
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