Answer on Other Management Question for Seth Morgan
Thus, selling price = 190,000+110,000+80,000 = 380,000.
Realized gain is the amount of money actually earned in the sale of an asset.
RealG = 380,000 - 212,000 = 168,000.
Recognized gain is a profit earned from the sale of an asset.
RecG = 168,000 * 300,000 / 380,000 = 132,632. The balance of the gain will be recognized when the amount of 80,000 is collected.
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