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Floyd, a cash basis taxpayer, sold land in which he had a basis of $10,000, for $100,000. He received $25,000 on January 1 of the
Floyd, a cash basis taxpayer, sold land in which he had a basis of $10,000, for $100,000. He received $25,000 on January 1 of the year of the sale. On December 31 of the year after the sale he received a payment of $75,000 plus interest on that amount at 8% per year. How much income must Floyd report in total on this sale in the second year
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