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2. After you have completed your research and have a working understanding of installment sales and the installment method., create two tables in Excel forecasting

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2. After you have completed your research and have a working understanding of installment sales and the installment method., create two tables in Excel forecasting the amount and character of Ms. Marlin's taxable income and her tax liability over the next 5 years under each of the following two scenarios: 6) Ms. Marlin sells the land for $200,000 on December 31, 2017 and receives all $200,000 in 2017. Under this option, Ms. Marlin would have no interest income from the sale of the land. The gain on the sale of the land in 2017 would be in addition to her S50,000 in taxable income (ordinary income) (ii) (ii) Ms. Marlin sells the land in an installment sale with a $40,000 down payment in 2017 (with no interest) and then four equal annual installments of $40,000/year for 2018- 2021 (with adequate stated interest). Ms. Marlin would not elect out of the installment method. The as follows: payment schedule is December 31, 2017: $40,000 down payment/principal (no interest) December 31, 2018: $40,000 principal and $4,800 interest December 31, 2019: $40,000 principal and S3,600 interest December 31, 2020: $40,000 principal and $2,400 interest December 31, 2021: $40,000 principal and $1,200 interest In making your calculations, assume that tax rates and tax brackets will remain at 2017 levels for the next 5 years. Remember that capital gains are subject to preferential rates that vary depending on the taxpayer's marginal tax bracket, but interest is taxed as ordinary income (at the taxpayer's ordinary income tax rates). There is no set format you need to use for your tables. However, the tables should look professional and all relevant information should be clearly displayed and labeled. Someone reading the tables should be able to quickly and easily interpret the results and identify how you calculated your forecasted tax liability for each scenario. Use form ulas in cells where possible

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