Use the following information for the next two questions
Colton Company sold stud that cost $240,000 for $600,000 on January 1, 2015.
Cash collections were as follows
2015 $150,000
2016 $250,000
2017 $200,000
1) The profit to be recognized in the first year (2015) using the installment sale method of accounting is:
A) $90,000.00
B) $–0-
C) $100,000.00
D) $150,000.00
E) $184,426.23
2) The profit to be recognized in the second year (2016) using the cost recovery method of accounting is:
A) $143,442.62
B) 250,000.00
C) $10,000.00
D) $90,000.00
E) $160,000.00