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22-05-2023
Business

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During 2019. Wells Company sold 15 acres of prime commercial zoned land to a builder for $8,000,000. The builder gave Wells a $2,000,000 down payment and will pay the remaining balance of $6,000,000 to Wells in 2020. Wells purchased the land in 2012 for $4,000,000. Using the cost recovery method, how much profit will Wells report for 2019?

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