8. Frank Willingham has the following transactions during the year:

Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2005. Frank has claimed $5,000 in depreciation and sells the asset for $13,000 with no selling costs.

Sale of land on April 19 for $120,000. The land cost $130,000 when purchased on February 1, 2002. Frank’s selling costs are $5,000.

Assume there were no capital improvements on either business asset sold.

Frank’s Social Security number is 924-56-5783. Complete Form 4797 on pages 8-43 and 8-44 to report the above gains or losses.

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Form 6252 Department of the Treasury Internal Revenue Service Namejsi shown on return Installment Sale Income Attach to your tax return. Use a separate form for each sale or other disposition of property on the Installment method. OMB No. 1545-0228 2010 Attachment Sequence No. 79 Identifying number 1 Description of property 2a Date acquired (mm/dd/yyyy) I 3 b Date sold (mm/dd/yyyy) I Was the property sold to a related party (see instructions) after May 14, 19807 If "No." skip line 4. 4 Was the property you sold to a related party a marketable security? If "Yes," complete Part III. If "No," complete Part III for the year of sale and the 2 years after the year of sale 5 LOO Part I Gross Profit and Contract Price. Complete this part for the year of sale only. Selling price including mortgages and other debts. Do not include interest whether stated or unstated Mortgages, debts, and other liabilities the buyer a umed or took the 7 8 9 10 11 345 property subject to (see instructions) Subtract line 6 from line 5. rar Cost or other basis of property sold Depreciation allowed or allowable 7/23/2010 Adjusted basis. Subtract line 9 from line 8 Commissions and other expenses of sale Income recapture from Form 4797, Part III (see instructions) Add lines 10, 11, and 12. 10 11 12 Subtract line 13 from line 5. If zero or less, do not complete the rest of this form (see instructions) Yes No Yes No. 5 12 13 13 14 14 15 If the property described on line 1 above was your main home, enter the amount of your excluded gain (see instructions). Otherwise, enter -0- . 15 16 Gross profit. Subtract line 15 from line 14 16 17 Subtract line 13 from line 6. If zero or less, enter -D- 17 18 18 Part II Contract price. Add line 7 and line 17 Installment Sale Income. Complete this part for the year of sale and any year you receive a payment or have certain debts you must treat as a payment on installment obligations. 19 Gross profit percentage (expressed as a decimal amount). Divide line 16 by line 18. For years after the year of sale, see instructions. 223 20 If this is the year of sale, enter the amount from line 17. Otherwise, enter -0- . 21 22 Payments received during year (see instructions). Do not include interest, whether stated or unstated Add lines 20 and 21 19 20 22 23 Payments received in prior years (see instructions). Do not include interest, whether stated or unstated 23 24 Installment sale income. Multiply line 22 by line 19. 25 26 Enter the part of line 24 that is ordinary income under the recapture rules (see instructions) Subtract line 25 from line 24. Enter here and on Schedule D or Form 4797 (see instructions). Part III Related Party Installment Sale Income. Do not complete if you received the final payment this tax year. Name, address, and taxpayer identifying number of related party 27 24 25 26 28 Did the related party resell or dispose of the property ("second disposition") during this tax year?. 29 Yes No. If the answer to question 28 is "Yes," complete lines 30 through 37 below unless one of the following conditions is met. Check the box that applies. a The second disposition was more than 2 years after the first disposition (other than dispositions of marketable securities). If this box is checked, enter the date of disposition (mm/dd/yyyy). b The first disposition was a sale or exchange of stock to the issuing corporation. d e The second disposition was an involuntary conversion and the threat of conversion occurred after the first disposition. The second disposition occurred after the death of the original seller or buyer. It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for either of the dispositions. If this box is checked, attach an explanation (see instructions). 30 Selling price of property sold by related party (see instructions) 32 Enter the smaller of line 30 or line 31.. 30 31 Enter contract price from line 18 for year of first sale. 31 32 33 34 Total payments received by the end of your 2010 tax year (see instructions) Subtract line 33 from line 32. If zero or less, enter -D- 33 34 35 36 37 Multiply line 34 by the gross profit percentage on line 19 for year of first sale. Enter the part of line 35 that is ordinary income under the recapture rules (see instructions) Subtract line 36 from line 35. Enter here and on Schedule D or Form 4797 (see instructions). 35 36 37 For Paperwork Reduction Act Notice, see page 4. Cat. No. 13801R Form 6252 (2010)