Under the installment sales method

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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 compu- tations. 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: EM131109690

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