Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property
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Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000 and she receives only the $25,000 down payment in the year of sale, how much is Pat’s taxable gain in the year of sale using the installment sales method?
a. $0
b. $5,000
c. $17,500
d. $25,000
e. $75,000
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Related Book For
Income Tax Fundamentals 2021
ISBN: 9780357141366
39th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
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