Cost-recovery method


On January 1, 2010, Shaw Co. sold land that cost $210,000 for $280,000, receiving a note bearing interest at 10%. The note will be paid in three annual installments of $112,595 starting December 31, 2010. Because collection of the noteis very uncertain, Shaw will use the cost-recovery method. How much revenue from this sale should Shaw recognize in 2010?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Cost-recovery method
Reference No:- TGS091258

Expected delivery within 24 Hours