48. Lee sold land on the installment basis for $120,000. His basis in the land was $80,000. Lee received a $50,000 down payment and a real estate installment sale contract calling for $70,000 in additional payments in future years. In addition, Lee paid $10,000 in commissions on the sale. What is the gross profit to be recognized in the current year? A) $12,500 B) $30,000 C) $40,000 D) $120,000 49. Bella sold d machine for $140,000. The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable. The buyer assumed an existing loan of $40,000, paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest. Selling expenses are $10,000. The total gross profit for installment sale recognition purposes is A) $30,000 B) $40,000. C) $50,000 D) $60.000