Treyton sold an apartment building for $600,000. His basis in the building was $360,000 subject to...

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Accounting

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.

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Answer Treytons installment sales gain that should be reported in the year of sale are as follows We first calculate the gross profit ratio Particular Amount Selling Price of See Answer

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Treyton sold an apartment building for $600,000. His basis in the building was $360,000 subject to...

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Accounting

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