51. During 2010, Company A sold a piece of land with a cost of $6 million to Company B for $10
million. Company B made a $2 million down payment with the remaining balance to be paid
over the next 5 years. It has been determined that there is significant doubt about the ability
and commitment of the buyer to complete all payments. Company A would most likely report a
profit in 2010 of:
A. $4 million using the accrual method.
B. $0.8 million using the installment method.
C. $2 million using the cost recovery method.
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