Bright Corporation sold its old warehouse with carrying amount (tax basis) of P600,000 for P1,000,000. A downpayment of 15% was collected on July 1, 2016. Additional P150,000 installment payments were received as of December 31, 2016. Compute the gross profit to be reported for the year 2016

Bright Corporation sold its old warehouse with carrying amount (tax basis) of P600,000 for P1,000,000. A downpayment of 15% was collected on July 1, 2016. Additional P150,000 installment payments were received as of December 31, 2016. Compute the gross profit to be reported for the year 2016

Bright Corporation sold its old warehouse with carrying amount (tax basis) of P600,000 for P1,000,000. A downpayment of 15% was collected on July 1, 2016. Additional P150,000 installment payments were received as of December 31, 2016. Compute the gross profit to be reported for the year 2016




A. P60,000
B. P120,000
C. P150,000
D. P400,000


Answer: D. P400,000


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