John owns a classic automobile that had a cost basis of $32,000. John paid $38,000 to have the automobile fully restored. John sells the automobile through an installment sale for $100,000. John is to receive a $25,000 down payment in the current year, and $15,000 per year for five years, beginning this year.

What amount of gain must John recognize during the current year?

Answer rating: 100% (QA)

To determine the amount of gain John must recognize during the current year from the installment sal... View the full answer