Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...

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Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...

Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows:

Adjusted basis
$25,000

Selling price
90,000

Selling expenses
1,500

Down payment
12,000

Four installment payments
15,000

Mortgage assumed by the buyer
18,000

Each installment payment is due on September 1 of 2019, 2020, 2021, and 2022 (ignore interest). Determine the tax consequences in 2018, 2019, 2020, 2021, and 2022.

business accounting

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Answer 1

Answer #1

Solution: - . Given data, , Adjusted basis Selling price $25000 $ 90000 1500 Sellingexpenses Down payment 12000 four installm Sepl ,2018 =) 12000 3 88.19% =$10584 gain recognized Sep 1, 2019 = 150007 88.19% = $ 13229 Sepi, 2020 = 15000* 88-19% . = $ 1

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Answer 2

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Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...

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