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1. Bette Fidler is planning on selling property to John Williams for $250,000 on a 3-year installment basis. John will pay a 30 percent down

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1. Bette Fidler is planning on selling property to John Williams for $250,000 on a 3-year installment basis. John will pay a 30 percent down payment and the balance will be financed over a 5-year period at 6 percent interest with annual payments. Bette's original purchase price was $160,000 with acquisition costs of $10,000. She has made no capital improvements, and her accumulated depreciation is $37,000 on a straight- line basis. Bette also has selling expenses of $6,000 and is in the 15 percent tax bracket Calculate Bette's BTCFs and ATCFs for each of these 3 years. (HINT: In Table 16-8 the 70% "Depreciation Recapture" was obtained by dividing the accumulated depreciation of $45,500 by the total capital gain of $65,000. Hope this helps!)

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