Question
I am lost. I need help to answer this. I keep getting wrong answers TPW. calendar year taxpayer. sold Iend a 3535.000 tax basis for
I am lost. I need help to answer this. I keep getting wrong answers
TPW. calendar year taxpayer. sold Iend a 3535.000 tax basis for $750,000 In February. The purchaser pald 375,000 cash closlng and gave TPW en Interest-bearlng note for the 3675.000 remeln[ng price In August. TPW recerved S55.gso payment from the purchaser conslstlng of S33,750 prlnclpal payment and a 322.200 Interest payment In first year after the year of sale, TPW recelved payments totallng S106,900 from the purchaser The total conslsted of S67,500 prlnclpal payments and $39,400 Interest payments. a. Compute TRW's galn recognlzed under the Installment sale method. b. Compute TRW's tax basls In the note at the end oflhe year.
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