If Parnell Industries is uncertain that it will collect all four payments from Ranger Inc and uses the installment method of accounting for revenue recognition what amount of gross profit should Parnell recognize in 2012 from the sale?
a. $0
b. $861,883
c. $172,377
d. $800,000
C
$861,883 - [.80 ? 861,883 ] = 172,377
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