Mathematics, 08.03.2021 18:10 cchave9563
In 2020, the company completed seven contracts that allow for the customer to pay on an installment basis. DeJohn recognized the related gross profit of $560,000 for financial reporting purposes. It reported only $112,000 of gross profit on installment sales on the 2020 tax return. The company expects future collections on the related installment receivables to result in taxable amounts of $112,000 in each of the next four years.
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In 2020, the company completed seven contracts that allow for the customer to pay on an installment...
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