Question: Sela sold a machine for $ 1 4 0 , 0 0 0 . The machine originally cost $ 9 0 , 0 0 0

Sela sold a machine for $140,000. The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable. The buyer assumed an existing loan of $40,000, paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest. Selling expenses are $10,000. The total gross profit for installment sale recognition purposes is
$30,000.
$40,000.
$50,000.
$60,000.

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