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Taylor sold a capital asset on the installment basis and did not charge interest on the deferred payment due in 3 years. Which of the
Taylor sold a capital asset on the installment basis and did not charge interest on the deferred payment due in 3 years. Which of the following is true?
Interest will be imputed, thus increasing the capital gain. |
Interest will be imputed, thus creating ordinary income. |
Interest will not be imputed because the contract is for less than 5 years. |
Interest will be imputed, thus reducing the seller's total income from the transactions. |
None of the above |
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