Question
2 . On December, 30 2020, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,200
2. On December, 30 2020, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,200 in selling expenses. The buyer paid $5,000 down with the balance payable in $10,000 installments over the next eight years. In addition, the buyer assumed a $15,000 mortgage on the property.
Under the installment sales method, what is the total contract price, the total gain on the sale, and the amount of gain reported in 2020?
Round any division to four decimal places and use that amount in subsequent computations. Round your final answer to the nearest dollar.
Under the installment sales method, the total gain on the sale is $__________ and the amount or gain reported in 2020 is $___________ .
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