During February, 2020, Jacob's Jewels sells a brooch for $428,000. The cost to the business of this brooch was $212,000, resulting in a gross profit of $216,000. The $428,000 sales price is to be paid in four equal annual instalments on December 31 in each of the years 2021 through 2024. Jacob's Jewels has a December 31 year end. Indicate the amount of the reserve that can be deducted, and the net business income, for each of the years 2020 through 2024.

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The Answer of During February, 2020, Jacob's Jewels sells a brooch for $428,000. The cost to the business of this brooch was $212,000, resulting in a gross profit of $216,000. The $428,000 sales price is to be paid in four equal annual instalments on December 31 in each of the years 2021 through 2024. Jacob's Jewels has a December 31 year end. Indicate the amount of the reserve that can be deducted, and the net business income, for each of the years 2020 through 2024.

During February, 2020, Jacob's Jewels Sells a Brooch for $428,000