[pfamily706]

Brooke Company began operations on January 1, 2011, and uses the installment sales method of accounting. The company has the following information available for 2011 and 2012:

2011 2012
Installment sales... $4,500,000 $5,400,000
Gross profit on sales... 30% 40%
Cash collections on 2011 sales... 1,500,000 3,600,000
Cash collections on 2012 sales... 4,200,000

The realized gross profit for 2012 would be


2.Leno Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Leno's operations for the first year:

Installment sales... $1,000,000
Cost of installment sales... 600,000
General and administrative expenses... 100,000
Collections on installment sales... 200,000

The balance in the deferred gross profit account at December 31 should be

3. The Gayle Corporation reported a $66,000 operating loss in 2011. In the preceding three years, Gayle reported the following income before taxes and paid the indicated income taxes:

Year Income Taxes Tax Rate
2008 $36,000 $10,800 30%
2009 24,000 8,400 35%
2010 48,000 16,800 35%

The amount of tax benefit to be reported in 2011 arising from the tax carryback provisions of the current tax code would be


4. Dodger Corporation reported a loss for both financial reporting purposes and tax reporting purposes of $231,000 in 2011. For financial reporting purposes, Dodger reported income before taxes for years 2008-2010 as listed below:

2008... $ 66,000
2009... 99,000
2010... 132,000

Assuming Dodger's tax rate is 30 percent in all periods, and that the company uses the carryback provisions, what amount should appear in Dodger's statements for financial reporting purposes as a net loss in 2011?