Kyle Sold Land on the Installment Basis for $100,000

question 89

Multiple Choice

Kyle sold land on the installment basis for $100,000.His basis in the land was $70,000.Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years.In addition,Kyle paid $6,000 in commissions on the sale.What is the gross profit to be recognized in the current year?

• A)$0
• B)$9,600
• C)$12,000
• D)$24,000

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Definitions:

Corporate Campaign

An organized effort, typically by unions, targeting a company to apply pressure for changes in labor practices or to support workers' rights.

Permanent Replace

The practice of hiring new employees to permanently take the positions of striking workers.

Federal Racketeering Laws

Laws under the Racketeer Influenced and Corrupt Organizations Act (RICO) designed to combat organized crime by allowing extended penalties for acts performed as part of a criminal organization.

Corporate Campaigns

Organized efforts, typically by unions or activist groups, aimed at applying pressure on a corporation to change its practices or to achieve specific goals.