Aviary Co., a sole proprietorship, sold a building for $600,000. Aviary received a down payment of $120,000 as well as annual principal payments of $120,000 for each of the subsequent four years. Aviary purchased the building for $500,000 and claimed depreciation of $80,000.

What amount of gain should Aviary report in the year of sale using the installment method?

Answer rating: 100% (QA)

In the installment method the gain on the sale of an asset is reported proportionately as the paymen... View the full answer