Pedro sells investment land on September 1, 2016. Information pertaining to the sale follows: ...
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Accounting
Pedro sells investment land on September 1, 2016. Information pertaining to the sale follows:
Adjusted basis
$30,000
Selling price
108,000
Selling expenses
1,450
Down payment
12,500
Four installment payments
18,000
Mortgage assumed by the buyer
23,500
Each installment payment is due on September 1 of 2017, 2018, 2019, and 2020 (ignore interest). Determine the tax consequences in 2016, 2017, 2018, 2019, and 2020
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