Pedro sells investment land on September 1, 2023. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer Required: $ 26,500 95,400 1,590 12,720 15,900 19,080 Each installment payment is due on September 1 of 2024, 2025, 2026, and 2027 (ignore interest). Determine the tax consequences in 2023, 2024, 2025, 2026, and 2027 Note: Round the gross profit percentage calculation to two decimal places. Round your final answer to the nearest whole dollar value. Answer is complete but not entirely correct. Gain Recognized Year 2023 $ 67 X 2024 $ 9,186 x 2025 $ 11,482 x 2026 $ 11,482x 2027 $ 36,747 x Total $ 68,964
Pedro sells investment land on September 1, 2023. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer Required: $ 26,500 95,400 1,590 12,720 15,900 19,080 Each installment payment is due on September 1 of 2024, 2025, 2026, and 2027 (ignore interest). Determine the tax consequences in 2023, 2024, 2025, 2026, and 2027 Note: Round the gross profit percentage calculation to two decimal places. Round your final answer to the nearest whole dollar value. Answer is complete but not entirely correct. Gain Recognized Year 2023 $ 67 X 2024 $ 9,186 x 2025 $ 11,482 x 2026 $ 11,482x 2027 $ 36,747 x Total $ 68,964
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 34P
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