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Hossein sold land on the installment basis for $120,000. His basis in the land was $85,000. Hossein received a $30,000 down payment and a real
Hossein sold land on the installment basis for $120,000. His basis in the land was $85,000. Hossein received a $30,000 down payment and a real estate installment sale contract calling for $90,000 in additional payments in future years. In addition, Hossein paid $5,000 in commissions on the sale. What is the gross profit to be recognized in the current year 2020?
A) $0
B) $7,500
C) $25,000
D) $30,000
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