Which of the Following Is Not True Regarding Installment Sales

question 13

Multiple Choice

Which of the following is not true regarding installment sales?

• A)Only gains are eligible for installment sale reporting.
• B)Depreciation recapture is deferred in an installment sale.
• C)The gross profit percentage is needed to determine the annual gain recognized.
• D)Stock sales are ineligible for installment sale treatment.
• E)None of thesE.Depreciation recapture is not eligible for installment sale treatment and must be reported as ordinary income in the year of sale.

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Definitions:

Mean

The average value of a set of numbers, obtained by dividing the sum of all the numbers by the count of numbers.

Percentile Points

Points or values below which a certain percentage of observations in a dataset fall, used to measure the relative standing of a value within a dataset.

F Distribution

A probability distribution that arises in the analysis of variance and is used in hypothesis testing and confidence interval estimation for two sample variances.

F Distribution

A probability distribution used in analysis of variance (ANOVA), among other tests, describing the ratio of variances from two normally distributed populations.