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101 point In 2020, Taxpayer sold machinery used in its business for its fair value of $140,000 to an unrelated party who agreed to pay

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101 point In 2020, Taxpayer sold machinery used in its business for its fair value of $140,000 to an unrelated party who agreed to pay $40,000 in 2020 plus $40,000 per year (plus adequate interest) in June of the next three years. The machinery had an initial basis of $120,000 and accumulated depreciation of $62,400 through the date of sale. Determine the total gain Taxpayer must recognize in 2020 under the installment method. Type your answer. Previous Next

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