Federal income tax return in the year of sale

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Birdco sold a building for $600,000 and received a down payment of $120,000 as well as annual principal payments of $120,000 for each of the subsequent four years. Birdco had purchased the building for $500,000 and claimed depreciation totaling $80,000 during its ownership of the building. What amount of gain should Birdco report on its federal income tax return in the year of sale using the installment method?

Reference no: EM131257383

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Federal income tax return in the year of sale : Birdco sold a building for $600,000 and received a down payment of $120,000 as well as annual principal payments of $120,000 for each of the subsequent four years. Birdco had purchased the building for $500,000 and claimed depreciation totaling $80,0..

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