What is the rate of gross profit on the installment sales

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During 2008, Steele Corporation sold merchandise costing $1,500,000 on an installment basis for $2,000,000. The cash receipts related to these sales were collected as follows: 2008, $800,000; 2009, $700,000; 2010, $500,000.

Question (a) What is the rate of gross profit on the installment sales made by Steele Corporation during 2008?

Question (b) By what amount would Steele's net income for 2008 increase if installment method where employed?

Question (c) By what amount would Steele's net income for 2010 increases if cost-recovery method where employed?

Reference no: EM132592277

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