Question
Two years ago, Jake sold business-use property to Tom in an installment sale. The contract price was $10,000, and Jake's gross profit on the sale
Two years ago, Jake sold business-use property to Tom in an installment sale. The contract price was $10,000, and Jake's gross profit on the sale was $2,000. Tom has kept his end of the agreement by making regular, periodic payments ever since.
After subtracting interest, Jake received payments totaling $2,700 in 2022.
What amount should be reported as taxable, installment sale income on Jake's 2022 return?
A. $540
B. $2,000
C. $2,160
D. $2,700
Two years ago, Jake sold business-use property to Tom in an installment sale. The contract price was $10,000, and Jake's gross profit on the sale was $2,000. Tom has kept his end of the agreement by making regular, periodic payments ever since.
After subtracting interest, Jake received payments totaling $2,700 in 2022.
What amount should be reported as taxable, installment sale income on Jake's 2022 return?
A. $540
B. $2,000
C. $2,160
D. $2,700
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Don T Be Afraid Of Accounting Learn The Basics Of Financial Accounting And Be On Your Way To Greater Success
Authors: Brad Horton
1st Edition
1708221611, 978-1708221614
