what is the amount of gain that nick must report in the second year?

what is nicks basis in the repossessed stock?

Nick sells stock of a non-publicly traded corporation with a $6,000 adjusted basis for $10,000. Nick receives a $2,000 down payment with the balance of $8,000 due the following year. Nick is unable to collect the remaining $8,000 and, after incurring legal fees of $500, he repossesses the stock when it has a fair market value of $9,000. What is the amount of gain that Nick must report in the first year? Nick sells stock of a non-publicly traded corporation with a $6,000 adjusted basis for $10,000. Nick receives a $2,000 down payment with the balance of $8,000 due the following year. Nick is unable to collect the remaining $8,000 and, after incurring legal fees of $500, he repossesses the stock when it has a fair market value of $9,000. What is the amount of gain that Nick must report in the first year