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Baseball sells land ($40,000 basis) for a total consideration of $400,000, consisting of a $45,000 down payment in the year of sale and six annual
Baseball sells land ($40,000 basis) for a total consideration of $400,000, consisting of a $45,000 down payment in the year of sale and six annual payments of $50,000 beginning in the following tax year. In addition, the purchaser assumed a $55,000 mortgage on the property. Baseball's "gross profit percentage" for purposes of the installment sale computation is
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