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Ranch Corporation sells five acres of land in 2010 for a total contract price of $125,000. The company received a down payment of $25,000 and

Ranch Corporation sells five acres of land in 2010 for a total contract price of $125,000. The company received a down payment of $25,000 and is to receive $20,000 in each of the following five years. Ranch's gross profit from the sale is $80,000. What are the tax consequences if: (a.) Ranch reports its gain on the installment method? (b.) Ranch elects out of the installment method

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