Question - Rosson Corporation, which began business on January 1, 2008. Appropriately uses the installment sales method of accounting for income tax reporting purposes. The following data is available for 2008:
Installment accounts receivable, 12/31/2008: $200,000
Installment Sales for 2008: $350,000
Gross Profit on Sales: 40%
Under the installment sales method, what would be Rosson's deferred gross profit at December 31, 2008?
a. $120,000
b. $90,000
c. $80,000
d. $60,000