Problem
In 2022, Skylar sold equipment for $205,200 cash and a $2,052,000 note due in two years. Skylar's cost of the property was $1,641,600, and he had deducted depreciation of $984,960.
If required, round any division to two decimal places and your final answers to the nearest dollar.
• Under the installment sales method, what is Skylar's total realized gain?
• In the year of sale, how much § 1245 gain does Skylar recognize?
How much gain can be deferred under the installment sale method?