Which of the Following May Qualify as an Installment Sale

question 56

Multiple Choice

Which of the following may qualify as an installment sale?

• A) Sale of inventory at a gain.
• B) Sale of securities.
• C) Sale of asset used in a business at a gain.
• D)Land sold at a loss.
• E)All of these qualify for installment sale treatment.

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Definitions:

Net Investment

The total amount spent on acquiring, maintaining, and improving fixed assets, minus depreciation.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Market Value

The current price at which an asset or service can be bought or sold.

Annual Net Cash Flows

The total amount of money that flows into and out of a business over a year, after all revenues are collected and expenses are paid.