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In 2018 an individual investor purchased 1,000 shares of a corporation's stock for $5,000. In 2019 the investor purchased 2,000 more shares of the corporation's
In 2018 an individual investor purchased 1,000 shares of a corporation's stock for $5,000. In 2019 the investor purchased 2,000 more shares of the corporation's stock for $7,000. During 2020 the investor agreed to sell 2,500 of the shares to another investor in a deferred sale. Proceeds under the terms of the deferred sale are: year #1 - $7,000; years #2 through #6 - $1,800 each year. How much will the original investor include in taxable income in year #2 (2021)
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