Tim Sells Land to Brad for $90,000

question 72

Multiple Choice

Tim sells land to Brad for $90,000. Tim originally purchased the land for $50,000. Brad agrees to pay Tim six annual installments of $15,000 each. In year three, Brad makes his third installment of $15,000. How much taxable gain will Tim recognize in year three?

• A)$5,000
• B)$6,667
• C)$13,333
• D)$15,000
• E)All the taxable gain should be recognized in year one.

---

Definitions:

Type II Alcoholism

A category of alcoholism characterized by early onset, genetic predisposition, and often associated with antisocial personality traits.

Men

Adult male human beings, often studied in various scientific and sociocultural contexts.

Women

Female human beings; often discussed in numerous contexts including social, biological, cultural, and political.

Middle-Aged

Refers to the period in human life roughly between the ages of 40 and 65, often characterized by stability in relationships, career, and personal life.