I need answer of this question solution general accounting BlueSky Corp. sold manufacturing equipment with a $45,600 adjusted taxbasis for $160,000 in 2009. The buyer paid $70,000 in cash and issued anote for the remaining $90,000. BlueSky is using the installment salemethod to recognize the gain. In 2012, after receiving $35,000 in principalpayments on the note, BlueSky sold the remaining balance of the note toa bank for $55,000. Calculate BlueSky's recognized gain on the sale ofthe installment note in 2012.A. $0 B.B. $42,500C. $39,325D. $55,000E. $34,925

To calculate the recognized gain on the sale of the installment note in 2012, we need to follow…

Answered: BlueSky Corp. sold manufacturing…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 84TA

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