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Scenario 2 - April Smith Complete Form 6252 and Form 4797. April Smith (555-00-5555) purchased an office building on January 15, 2016, for $175,000 (including

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Scenario 2 - April Smith Complete Form 6252 and Form 4797. April Smith (555-00-5555) purchased an office building on January 15, 2016, for $175,000 (including closing costs). The building was located on leased land and April made an annual payment for the use of the land. She sold the building on June 30, 2020, in an installment sale to a nonrelated party. April's adjusted basis in the building on the date of the sale was $164,156. Depreciation expense through the date of sale was $10,844. The selling price was $300,000 and she paid closing costs to her attorney of $3,000. The buyer made a down payment of $50,000 and assumed April's existing mortgage of $100,000. April agreed to accept monthly payments of $5,000 each for the remaining $150,000 (including interest of 4.333%). She received the six monthly payments due on the note ($23,500 principal and $6,500 interest) in 2020. 4. Answer the following question based on the scenario involving April Smith. Where should April report the $6,500 of interest she earned from this transaction? C A) Schedule A CB) Schedule B C C) Form 8949 C D Schedule C 5. Answer the following question based on the Form 6252 you completed for April Smith. Select the gross profit from line 16: C A) $132,844 CB) $135,844 C C) $129,844 CD) $131,844 6. Answer the following question based on the Form 6252 you completed for April Smith. Select the payments received during the current year from line 21: CA) $23,500 CB) $30,000 C C) $83,500 CD) $90,000

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