Yarbow Corporation has a normal gross profit on installment sales of 30%. A 2006 sale...
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Accounting
Yarbow Corporation has a normal gross profit on installment sales of 30%. A 2006 sale resulted in a default early in 2008. At the date of default, the balance of the installment receivable was $24,000, and the repossessed merchandise had a fair value of $13,500. Assuming the repossessed merchandise is to be recorded at fair value, the gain or loss on repossession should be ......................................... .
Select one:
a.a $3,300 gain.
b. a $7,500 loss.
c. a $3,300 loss.
d. $0.
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