Treyton sold an apartment building for $600,000. His basis inthe building was $360,000 subject to $30,000 of depreciationrecapture. Treyton received $150,000 in the year of sale, the buyerassumed Treyton’s mortgage payable of $240,000, and the buyer gaveTreyton an 8% (the current Federal rate) note of $210,000 due infive years. The interest on the note was payable each June 30beginning in the year following the year of the sale. Treytonincurred $30,000 of selling expenses which he paid for in the yearof sale. Compute Treyton’s installment sales gain that should bereported in the year of sale.
