All of the Following Deferred Payment Sales Qualify for Installment

question 23

Multiple Choice

All of the following deferred payment sales qualify for installment reporting except:

• A) Sale of depreciable property at a gain to seller's brother
• B) Transfer of a building subject to a mortgage in excess of basis where no other consideration is paid
• C) Sale of real property used in a trade or business
• D) Sale of depreciable property to the seller's 82 percent owned corporation

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to evaluate a company's worth.

Fully Depreciated

Refers to an asset that has reached the end of its useful life for accounting purposes, having no remaining book value.

Gain

A financial increase in the value of an asset or a rise in the value of an investment, excluding the amounts invested or cost incurred to achieve the gain.

Book Value

The net value of an asset or company based on its balance sheet accounts, calculated as assets minus liabilities.