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Tar River Company sold a business asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and gave Tar
Tar River Company sold a business asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and gave Tar River a note for the $70,000 balance of the price. Tar River will not receive a payment on the note until next year. Compute Tar River's gain recognized in the year of sale under the installment sale method. O $7,690 O $6,510 O $4,920 O None of the above
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