In December, Don sells unlisted stock with a cost of $29,400 for $42,000. Don collects $7,000 down and is scheduled to receive $7,000 per year for five years plus interest at a rate acceptable to the IRS. Read the requirements. Requirement a. How much gain must Don recognize in the year of the sale? Assume Don uses the installment method to report the gain. Begin by calculating the gross profit percentage. First identify the formula, then enter the applicable amounts and calculate the gross profit percentage. Gross profit Gross profit percentage % The net gain recognized in the year of the sale is $ Requirement b. The following January, Don sells the five remaining installments for a total of $27,000. How much gain or loss must Don recognize from the sale of the remaining installments? First identify the formula, then enter the applicable amounts and calculate the gain or loss on the sale of the remaining installments. (Use a parentheses or a minus sign to show a loss on sale.) Gain (loss) on sale = i X Requirements a. b. How much gain must Don recognize in the year of the sale? Assume Don uses the installment method to report the gain. The following January, Don sells the five remaining installments for a total of $27,000. How much gain or loss must Don recognize from the sale of the remaining installments? Print Done