On January 1, 2007, Barkly Company
sold property for $200,000. The note will be collected as follows: $100,000 in 2007, $60,000 in 2008, and
$40,000 in 2009. The property had cost Barkly $150,000 when it was purchased in 2005.
(a) Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery
(b) Compute the amount
Gross profit 50000
Gross profit ...
The expert examines installment sales method and the cost-recovery methods.