LO.4 Arnold gave land to his son, Bruce. Arnolds basis in the land was $100,000, and its

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LO.4 Arnold gave land to his son, Bruce. Arnold’s basis in the land was $100,000, and its fair market value at the date of the gift was $150,000. Bruce borrowed $130,000 from a bank that he used to improve the property. He sold the property to Della for $360,000.

Della paid Bruce $90,000 in cash, assumed his $120,000 mortgage, and agreed to pay

$150,000 in two years. Bruce’s selling expenses were $10,000. Della is going to pay adequate interest. What is Bruce’s installment sale gain in the year of sale?

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