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On December 15, 2021, Rigsby Sales Co. sold a tract of land that...

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Accounting

On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $410,000 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. In its December 31, 2021, balance sheet, Rigsby would report:

Multiple Choice

a. Deferred gross profit of $106,600.

b. Installment receivables (net) of $4,590,000.

c. Realized gross profit of $106,600.

d. Installment receivables (net) of $3,396,600.

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