Four decimal places and use in subsequent computations

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Reference no: EM131107501

On December 30, 2015, Whitney sold a piece of property for $85,000. Her ba- sis in the property was $40,000, and she incurred $1,200 in selling expenses.

The buyer paid $5,000 down with the balance payable in $10,000 installments over the next eight years. In addition, the buyer assumed a $15,000 mortgage on the property. Round any division to four decimal places, and use in subsequent computations. Under the installment sales method, what is the total contract price, the total gain on the sale, and the amount of gain reported in 2015?

Reference no: EM131107501

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