On december 15, 2021, rigsby sales co. sold a tract of land that cost $3,800,000 for $5,000,000. rigsby appropriately uses the installment sales method of accounting for this transaction. terms called for a down payment of $490,000 with the balance in two equal annual installments payable on december 15, 2022, and december 15, 2023. ignore interest charges. rigsby has a december 31 year-end.
(1) in 2021, rigsby would recognize realized gross profits of
(2) in 2021, rigsby would recognize realized gross profits of
(3) in its december 31, 2022, balance sheet, rigsby would report:

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.