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6 November, 01:44

Simon sold investment property 2 years ago for $750. simon's basis in the property was $200. simon is receiving $150 per year from the buyer. simon reports this income on the installment method. if simon collects $150 in principal during the current year, how much gain should he report from the sale for the year

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  1. 6 November, 04:17
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    The gain that he should report from the sale for the year is $110.

    Explanation:

    Simons investment on Property = $200

    Simon sold the property = $750

    Simons receiving per year $ 150

    total period = 750/150

    = 5 years.

    Total gain = 750 - 200 = 550

    current year gain = 550/5

    = $110

    Therefore, The gain that he should report from the sale for the year is $110.
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