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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