Gain by the installment method


Judith sold property and reported the gain by the installment method. Her basis in the property was $200,000, and it was subject to $200,000 of depreciation recapture. Judith sold the property for $200,000 cash on the date of sale, June 30, 2005 and a note for $800,000 (plus interest at the Federal rate) due on June 30, 2006. Judith's gain to be reported in 2005 (exclusive of interest) is:

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Accounting Basics: Gain by the installment method
Reference No:- TGS069414

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