All of the Following Taxpayers Can Use the Installment Method

question 15

Multiple Choice

All of the following taxpayers can use the installment method to report gains from the sale of assets except:

• A)A taxpayer who sells a parcel of land used in his trade or business.
• B)A taxpayer who sells land he inherited from his father five years ago.
• C)A taxpayer who sells a large piece of manufacturing equipment on which he took a Section 179 deduction for the total cost two years ago when purchased.
• D)A taxpayer who sells a building used in his trade or business for five years that was depreciated using straight-line depreciation.

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Definitions:

Personable Animal Characters

Animal characters in media or literature that are given human traits, emotions, and personalities, making them relatable to the audience.

Intangibility

A characteristic of services that means they cannot be touched, seen, tasted, or held in a physical sense before they are purchased.

Leather Seats

High-quality, durable seating surfaces made from the hide of animals, notably used in automotive upholstery.

Trade Surplus

A situation where a country's exports exceed its imports in value over a certain period of time.