Grant Corporation Sells Land (A Noninventory Item)with a Basis of $57,000

question 18

Multiple Choice

Grant Corporation sells land (a noninventory item) with a basis of $57,000 for $100,000. Nichole will be paid on an installment basis in five equal annual payments, starting in the current year. The E&P for the year of sale will be increased as a result of the sale (excluding federal income taxes) by

• A)$0.
• B)$8,600.
• C)$43,000.
• D)$100,000.

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Definitions:

Hub

A common connection point for devices in a network, which is used to connect segments of a LAN and manage data traffic.

Star Topology

"A network architecture in which all network nodes are connected to a central device that routes the nodes’ messages."

Network Protocol

A set of rules and conventions for data exchange over a network, which dictates the format, timing, sequencing, and error checking of messages between devices.

Physical Layout

The arrangement and organization of physical components in a system or device, often crucial for optimizing performance and functionality.