Barbara sells vacant land that was held for investment in her business for $274,000. The land had an adjusted basis of $57.540. The buyer has offered to pay for the land with $61,000 cash at the date of sale and then in three equal installments of $71,000 over the next three years beginning on January 1 of the next year. What is Barbara's realized and recognized gain in each year of the sale? Assume that adequate interest is paid in addition to the numbers shown above. Realized gain Recognized gain in year 1 Recognized gain in year 2 Recognized gain in year 3 Recognized gain in year 4 $ $ 216,460 45.457 48,190 48,190 48,190
Barbara sells vacant land that was held for investment in her business for $274,000. The land had an adjusted basis of $57.540. The buyer has offered to pay for the land with $61,000 cash at the date of sale and then in three equal installments of $71,000 over the next three years beginning on January 1 of the next year. What is Barbara's realized and recognized gain in each year of the sale? Assume that adequate interest is paid in addition to the numbers shown above. Realized gain Recognized gain in year 1 Recognized gain in year 2 Recognized gain in year 3 Recognized gain in year 4 $ $ 216,460 45.457 48,190 48,190 48,190
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:Barbara sells vacant land that was held for investment in her business for $274,000. The land had an adjusted basis of $57.540. The
buyer has offered to pay for the land with $61,000 cash at the date of sale and then in three equal installments of $71,000 over the
next three years beginning on January 1 of the next year. What is Barbara's realized and recognized gain in each year of the sale?
Assume that adequate interest is paid in addition to the numbers shown above.
Realized gain
Recognized gain in year 1
Recognized gain in year 2
Recognized gain in year 3
Recognized gain in year 4
$
$
$
$
216,460
45.457
48,190
48,190
48,190
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT