Pedro sells investment land on September 1, 2023. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer Required: $ 26,500 95,400 1,590 12,720 15,900 19,080 Each installment payment is due on September 1 of 2024, 2025, 2026, and 2027 (ignore interest). Determine the tax consequences in 2023, 2024, 2025, 2026, and 2027 Note: Round the gross profit percentage calculation to two decimal places. Round your final answer to the nearest whole dollar value. Answer is complete but not entirely correct. Gain Recognized Year 2023 $ 67 X 2024 $ 9,186 x 2025 $ 11,482 x 2026 $ 11,482x 2027 $ 36,747 x Total $ 68,964
Pedro sells investment land on September 1, 2023. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer Required: $ 26,500 95,400 1,590 12,720 15,900 19,080 Each installment payment is due on September 1 of 2024, 2025, 2026, and 2027 (ignore interest). Determine the tax consequences in 2023, 2024, 2025, 2026, and 2027 Note: Round the gross profit percentage calculation to two decimal places. Round your final answer to the nearest whole dollar value. Answer is complete but not entirely correct. Gain Recognized Year 2023 $ 67 X 2024 $ 9,186 x 2025 $ 11,482 x 2026 $ 11,482x 2027 $ 36,747 x Total $ 68,964
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ashvinbhai
Transcribed Image Text:Pedro sells investment land on September 1, 2023. Information pertaining to the sale follows:
Adjusted basis
Selling price
Selling expenses
Down payment
Four installment payments
Mortgage assumed by the buyer
Required:
$ 26,500
95,400
1,590
12,720
15,900
19,080
Each installment payment is due on September 1 of 2024, 2025, 2026, and 2027 (ignore interest). Determine the tax consequences in
2023, 2024, 2025, 2026, and 2027
Note: Round the gross profit percentage calculation to two decimal places. Round your final answer to the nearest whole dollar
value.
Answer is complete but not entirely correct.
Gain
Recognized
Year
2023
$
67 X
2024
$
9,186 x
2025
$
11,482 x
2026
$
11,482x
2027
$
36,747 x
Total
$
68,964
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