On december 15, 2018, rigsby sales co. sold a tract of land that cost $3,600,000 for $4,500,000. rigsby appropriately uses the installment sales method of accounting for this transaction. terms called for a down payment of $500,000 with the balance in two equal annual installments payable on december 15, 2019, and december 15, 2020. ignore interest charges. rigsby has a december 31 year-end. at december 31, 2019, rigsby would report in its balance sheet:
(a)-deferred gross profit of $828,000.
(b)-cost of installment sales $1,472,000.
(c)-realized gross profit of $400,000.
(d)-realized gross profit of $828,000.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51