On October 31, 20x4, Mr. Cruz bought properly from D'Vision Heights which had earlier cost the latter P250,000. The company received a dwon payment of P100,000 an a P400,0000 mortgage note payable in twenty equal semiannual installments plus 16% interest per annum an unpaid principal. Assuming the gross profit is recognized in the period of sale, the amount of gross profit to be recognized by D'Vision Heights in 20x6 would a. P 50,000 b. P 250,000
On October 31, 20x4, Mr. Cruz bought properly from D'Vision Heights which had earlier cost the latter P250,000. The company received a dwon payment of P100,000 an a P400,0000 mortgage note payable in twenty equal semiannual installments plus 16% interest per annum an unpaid principal. Assuming the gross profit is recognized in the period of sale, the amount of gross profit to be recognized by D'Vision Heights in 20x6 would a. P 50,000 b. P 250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 31, 20x4, Mr. Cruz bought properly from D'Vision Heights which had earlier cost the latter P250,000.
The company received a dwon payment of P100,000 an a P400,0000 mortgage note payable in twenty equal
semiannual installments plus 16% interest per annum an unpaid principal. Assuming the gross profit is
recognized in the period of sale, the amount of gross profit to be recognized by D'Vision Heights in 20x6 would
a. P 50,000
b. P 250,000
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