Taxable gain in year of sale using instalment sales method

Assignment Help Financial Management

Reference no: EM13874857

Pat sells real estate for $30,000 cash and $120,000 5-year note. If her basis in the property is $90,000 and she receives only the $30,000 down payment in the year of the sale, how much is Pat's taxable gain in the year of sale using the instalment sales method?

A. $60,000

B. $30,000

C. $15,000

D. $12,000

E. $0

Reference no: EM13874857

Questions Cloud

Exchanged equipment in qualifying-like-kind exchange : Fred and Sarajane exchanged equipment in a qualifying-like-kind exchange, Fred gives up equipment with an adjusted basis of $14,000 ( fair market value of $15,000)in exchange for Sarrajane's equipment with a fair market value of $12,000 plus $3,000 c..

What is the total market value of ordinary shares : Given the following, find the WACC assuming the company‘s tax rate is 30%. Debt: 8500 bonds, outstanding with a 7.2% coupon, $1000 par value, 25 years to maturity, current market yield is 5,82%, coupons made semi-annually. What is the total market va..

What is the basis for the claim? : Discuss and support your arguments with at least one real world example (not used in class) of the media either setting the agenda or following the government's lead.

How do managers use or apply the concept at work : Examples Provide specific examples of the "Human Resources Management" concept. How do managers use/apply the concept at work? Impact What impact does this concept have on company profits and/or services? How does this concept/issue impact the over..

Taxable gain in year of sale using instalment sales method : Pat sells real estate for $30,000 cash and $120,000 5-year note. If her basis in the property is $90,000 and she receives only the $30,000 down payment in the year of the sale, how much is Pat's taxable gain in the year of sale using the instalment s..

Why the artist may have chosen these objects : why the artist may have chosen these objects? What do you think he/she is trying to say with these images? What meanings do you interpret? How does the work have meaning in the time it was made? In our current time?

Calculated expected returns and standard deviations : You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five different well-diversified portfolios of risky assets:

Virginias gain or loss as result of these casualties : Virginia has a casualty gain of $5,000 and a casualty gain of $2,500, before reduction by the $100 floor. The gain and loss were the result of two separate casualties, and both properties were personal-use asset. What is Virginia's gain or loss as a ..

What values of discount factor would reversion to bertrand : For what values of the discount factor would reversion to Bertrand for only two periods sustain a collusive agreement to share equally the monopoly output?

User Account

All Pages