Wendy Sold Property on the Installment Basis in 2014 for More

question 68

Multiple Choice

Wendy sold property on the installment basis in 2014 for more than her basis in the property.Wendy was to receive installment payments at the end of each year for the next five years.In 2016,Wendy was killed in a car accident and the note was transferred to her estate.

• A)The estate must recognize the gain from all the amounts collected on the installment obligation in 2016.
• B)The income will be reported on Wendy's 2016 income tax return as income in respect of a decedent.
• C)The entire gain must be recognized in 2014.
• D)Gain is recognized by Wendy and reported on her 2016 income tax return when the note is transferred into the estate.
• E)None of the above.

Analyze the costs and benefits of tax refund loans and their alternatives.

Understand the components and purposes of finance charges in consumer credit.

Know the necessary information and procedures involved in filing for Chapter 7 bankruptcy.

Identify national non-profit organizations that assist with debt problems.

---

Definitions:

Monopolies

Economic situations where a single company or entity controls all or nearly all of the market for a particular type of product or service.

Standard Oil

Standard Oil was an American oil producing, transporting, refining, and marketing company. Established by John D. Rockefeller in 1870, it became the largest and first multinational corporation in the world before being dismantled in 1911 due to antitrust laws.

Upton Sinclair

An American writer and reformer, best known for his novel "The Jungle" (1906), which exposed the harsh conditions of the meatpacking industry.

Hetch Hetchy

A valley in Yosemite National Park, which was controversially dammed in the early 20th century to provide water to San Francisco.