Additional information: 1. The amount that would be realized on an outright sale of similar farm…

 

Additional information: 1. The amount that would be realized on an outright sale of similar farm machinery is $586,842. 2. The cost of the farm machinery sold to Valente Inc. is $425,000. 3. The finance charges relating to the installment period are based on a stated interest rate of 10%, which is appropriate. 4. Circumstances are such that the collection of the installments due under the contract is reasonably assured.

Instructions What income or loss before income taxes should Becker record for the year ended December 31, 2014, as a result of the transaction above?

 

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