On January 1, 2020, Reggae Ltd. sold land that cost $ 180,000 for $ 240,000, receiving a note bearing interest at 10 percent. The note will be paid in three annual instalments of $ 96,510 starting December 31, 2020. Assuming that collection of the note is very uncertain, how much revenue from this sale should Reggae recognize in 2020?
A) $ 0
B) $ 18,000
C) $ 24,000
D) $ 96,510
Correct Answer:
Verified
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