Question 14-31

mow Ineh gain does recognize on this sale 14-31 Installment Sale. On July 1, 2018, G sold her summer cottage (basis $70,000) for $105,000. The sale contract provided for a payment of $30,000 at the time of sale and payment of the $75,000 balance in three equal installments due in July 2019, 0, and 2021. Assuming a reasonable interest rate is charged on this deferred pay- ment sale, compute each of the following: a. Gross profit on the sale b. Total contract price c. Gross profit percentage d. Gain to be reported (excluding interest) in 2018 e. Gain to be reported (excluding interest) in 2019 f. Gain to be reported in 2018 if G elects not to use the installment method 1 2018 s sold a 100-acre tract of