1. Alexa would like to report all of the income from the sale of her computers in the current tax year, rather than use the installment sale method. However, Alexa heard that use of the installment method is required when at least one (1) payment is to be received after the close of the tax year in which the sale occurs.
   1. What code section and subsection would allow Alexa to elect out of the installment sale method? Please properly cite the IRC section and subsection.
   2. Instead of electing out of the installment sale method, assume Alexa sold real estate using the installment method. Alexas gross proceeds under the real estate contract were $400,000 and she had a basis in the property of $300,000. In 2021, Alexa collected $100,000. What gain does Alexa have to recognize on her tax return in 2021 under the installment sale method?

2. On April 13, James purchased 100 shares of Pirates Co. stock for $60 per share. On May 5, James sold the shares for $50. James later purchased 100 shares of Pirates for $55 per share on May 12.
   3. Which IRC section and subsection of the IRC determine the basis for Jamess shares purchased on May 12? Please properly cite the IRC section and subsection.
   4. What is the total basis of Jamess shares purchased on May 12?