An Investor Sells His Real Property Using an Installment Sale

question 34

Multiple Choice

An investor sells his real property using an installment sale. His capital gains tax would be due

• A) never, if he owned the property for more than one year.
• B) after the last installment s paid.
• C) the year of the sale.
• D) as he receives the payments.

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Definitions:

Materials

Substances or components used in the production or manufacturing of goods.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Materials

The raw inputs or components that are used in the manufacturing process to create finished goods.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of fully completed units.