During February, 2019, Jacob’s Jewels sells a brooch for $428,000

Accounting Dec 17, 2020

During February, 2019, Jacob’s Jewels sells a brooch for $428,000.  The cost to the business of this brooch was $212,000, resulting in a gross profit of $216,000.  The $428,000 sales price is to be paid in four equal annual instalments on December 31 in each of the years 2020 through 2023.  Jacob’s Jewels has a December 31 year end.  Indicate the amount of the reserve that can be deducted, and the net business income, for each of the years 2019 through 2023.

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