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Steve Drake sells a rental house on January 1, 2016, and receives $120,000 cash and...

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Accounting

Steve Drake sells a rental house on January 1, 2016, and receives $120,000 cash and a note for $45,000 at 10 percent interest. The purchaser also assumes the mortgage on the property of $35,000. Steves original cost for the house was $180,000 and accumulated depreciation was $30,000 on the date of sale. He collects only the $120,000 down payment in the year of sale.

Assuming Steve uses the installment sale method, complete Form 6252 for the year of the sale.

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