Russell Corporation sold a parcel of land valued at $500,000. Its basis in the land...
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Accounting
Russell Corporation sold a parcel of land valued at $500,000. Its basis in the land was $275,000. For the land, Russell received $0.00 in cash in year 0 and a note providing that Russell will receive $250,000 in year 1 and $250,000 in year 2 from the buyer.
a. What is Russells realized gain on the transaction?
b. What is Russells recognized gain in year 0, year 1, and year 2?
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