Problem - Installment sales reporting
The following information relates to an installment sale which took place in October 2010
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Sales Price
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Sale made on l October 2010 of a capital asset:
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Cash down payment
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100,000
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Installment note payable in 3 equal installments plus interest on 10/l/2011; 10/l/2012; and 10/l/2013
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270,000
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Mortgage on the property assumed by the buyer
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100,000
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470,000
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Adjusted basis of the capital asset sold:
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155,000
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What type and amount of income should be reported in 2010, 2011 and 2012?
Assume he sold his $90,000 installment note on 1/1/2013 for $80,000, what would the gain, What would the total gain over all years be?