Determine the tax consequences

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Question - Pedro sells investment land on September 1, 2017. Information pertaining to the sale follows:

Adjusted basis $24,000

Selling price 86,400

Selling expenses 1,200

Down payment 10,000

Four installment payments 14,400

Mortgage assumed by the buyer 18,800

Each installment payment is due on September 1 of 2018, 2019, 2020, and 2021 (ignore interest). Determine the tax consequences in 2017, 2018, 2019, 2020, and 2021.

Reference no: EM132272085

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