Ven Company is a retailer. In 2021, its before-tax net income for financial reporting purposes was $600,000. This included a $150,000 gain from the sale of land held for several years as a possible plant site. The cost of the land was $100,000, the contract price for the sale was $250,000, and the company collected $120,000 in the year of sale. The income per books also included $90,000 from a 24-month service contract entered into in July 2020 (the customer paid $180,000 in advance for this contract). The addition to the allowance for uncollectible accounts for the year was $70,000, and the actual accounts written off totaled $40,000. Answer the following regarding any necessary adjustments to the before-tax net income per books to compute Ven's taxable income for the year. What is the gross profit percentage for the installment sale? What is amount of the installment gain installment sale for 2021? What is the amount of service contract revenue recognized in 2021? $ What the amount of the bad debt deduction for 21? What is the amount of taxable income for 2021?

Ven Company is a retailer. In 2021, its before-tax net income for financial reporting purposes was $600,000. This included a $150,000 gain from the sale of land held for several years as a possible plant site. The cost of the land was $100,000, the contract price for the sale was $250,000, and the company collected $120,000 in the year of sale. The income per books also included $90,000 from a 24-month service contract entered into in July 2020 (the customer paid $180,000 in advance for this contract). The addition to the allowance for uncollectible accounts for the year was $70,000, and the actual accounts written off totaled $40,000. Answer the following regarding any necessary adjustments to the before-tax net income per books to compute Ven's taxable income for the year. What is the gross profit percentage for the installment sale? What is amount of the installment gain installment sale for 2021? What is the amount of service contract revenue recognized in 2021? $ What the amount of the bad debt deduction for 21? What is the amount of taxable income for 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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