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Required: Compute for the following:

Requirement (a):
Deferred gross profit, before year-end adjustment 560,000
Divide by: Gross profit on sales 40%
Installment sales 1,400,000
Installment accounts receivable, Dec. 31, 2021 (800,000)
Collections - 2021 600,000

Requirement (b):
Collections - 2021 600,000
Multiply by: Gross profit on sales 40%
Realized gross profit - 2021 240,000

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