Kay, who is not a real estate dealer, sold an apartment house to Parra during the current year (2022). The closing statement for the sale is as follows.

Total selling price			$190,000
Add: Parra's share of property taxes (six months) paid by Kay			3,000
Less: Kay's 8% mortgage assumed by Parra	$55,000
	Parra's refundable binder ("earnest money") paid in 2021	1,000
	Parra's 8% installment note given to Kay	99,000
	Kay's real estate commissions and attorney's fees	8,000		(163,000)
Cash paid to Kay at closing			$30,000
Cash due from Parra = $30,000 + $8,000 expenses			$38,000

During 2022, Kay collected $9,000 in principal on the installment note and $2,000 of interest. Kay's basis in the property was $110,000 [$125,000 $15,000 (depreciation)]. The Federal rate is 6%.

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Hint: Before you begin your computations, think about the manner in which the property taxes are handled.

When computing gross profit, round to six decimal places before converting to a percentage. For example: .683483333 would be rounded to .683483 and converted to 68.3483%. When required, round your final answers to the nearest dollar.

a. Compute the following.

The total gain is $fill in the blank 371e19055011f9b_1.

The contract price is $fill in the blank 371e19055011f9b_2.

Payments received in the year of sale total $fill in the blank 371e19055011f9b_3.

Recognized gain in the year of sale is $fill in the blank 371e19055011f9b_4, and the character of such gain is

1231 gaincapital gains 1231 gain

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