Mr z a nondealer sold assets on an installment plan

Question

Problem - Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2009. Relevant data include:

Year        Installment sales       Gross profit         2008 collections

2007       $200,000                       50,000                 25,000

2008         300,000                       81,000                 80,000

2009         400,000                       96,000                 125,000