Sela Sold a Machine for $140,000

question 34

Multiple Choice

Sela sold a machine for $140,000.The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable.The buyer assumed an existing loan of $40,000,paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest.Selling expenses are $10,000.The total gross profit for installment sale recognition purposes is

• A)$30,000.
• B)$40,000.
• C)$50,000.
• D)$60,000.