All of the following taxpayers would like to report the sale of property as an...
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Accounting
All of the following taxpayers would like to report the sale of property as an installment sale. Which of the following taxpayers is eligible to do so?
Arlene. She sold an office building for $130,000. She purchased it for $95,000 and had claimed $30,000 depreciation. Her buyer intends to pay $26,000 per year plus 5% interest for five years.
Bobby. He sold a food truck for $65,000. He purchased it for $55,000 and paid $19,000 for improvements. His buyer intends to pay for the truck over five years.
Kayla. She is downsizing and sold part of her inventory of personal property valued at $18,000 to Maxine for $27,000. Maxine intends to pay Kayla $9,000 per year, plus interest, for the next three years.
Xander. He sold an equipment trailer for $10,000. He received two $5,000 payments, the first on March 14, 2021, and the second on December 19, 2021. Xander paid $7,000 for the trailer when it was new, and it was fully depreciated.
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