On December 15,2013, Rigsby Sales Co. sold a tract of land that cost $3600000 for $4500000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500000 with the balance in two equal annual instalments payable on December 15,2014 and December 15,2015. Ignore interest charges. Rigsby has a December31 year-end
1: in 2013, Rigsby would recognize realized gross profits of
2: in 2014, Rigsby would recognize realized gross profits of
3: In its December 31, 2013, balance sheet, Rigsby would report:
A Realized gross profit of $100000
B: Deferred gross profit of $100000
C: Instalment receivables(net) of $3200000
D: Instalment receivables(net) of $4000000
4: At Dec 31,2014, Rigsby would report in its balance sheet:
A: Realized gross profit of $500000
B: Deferred gross profit of $400000
C: Realized gross profit of $400000
D: Cost of instalment sales $1600000