Question
Pedro sells investment land on September 1, 2021. Information pertaining to the sale follows: Adjusted basis $ 24,000 Selling price 86,400 Selling expenses 1,200 Down
Pedro sells investment land on September 1, 2021. Information pertaining to the sale follows:
| Adjusted basis | $ 24,000 |
| Selling price | 86,400 |
| Selling expenses | 1,200 |
| Down payment | 10,000 |
| Four installment payments | 14,400 |
| Mortgage assumed by the buyer | 18,800 |
Required:
Each installment payment is due on September 1 of 2022, 2023, 2024, and 2025 (ignore interest). Determine the tax consequences in 2021, 2022, 2023, 2024, and 2025.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar value.
| Year | Gain Recognized |
| 2021 |
|
| 2022 |
|
| 2023 |
|
| 2024 |
|
| 2025 |
|
| total |
|
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