Mark for blow up Question 22 of T5. ll of the following taxpayers would like to

Question

Mark for blow up Question 22 of T5. ll of the following taxpayers would like to report the sale as an installment sale. Which of the tollowing taxpayers may do so? O Jorge, who sold his entire inventory valoed at $15,000 to Quentin for $23,000 Quentin intends to pay him back $8,000 per year for the next three years O Rowand, who sold a backhoe to Thomas for $5,000, paid in two anpual instaliments Rowand paid $6,000 for the equipment whien t was new and had fully depreciated it before he sold it O Caney who s a atental condo 5 r S1 20 000 She had purchased t for S75 000 and had claimed S25,000 depreciation Her buyer tends to pay S20000 per year s 6% nterest or sx ye O Eena, who sold a plot of land for $52,000 She purchased & for $33,000 and paid $22000 for improvements. Her buyer intends to pay for the land over five years Mark for folow up

Explanation / Answer

Answer: 3rd option

The sale of which the purchaser requires regular annual payments with interest is installment sale. Therefore, paying regular and paying interest are the two criteria of such selling. These two happens only on the third option. Therefore, this is the installment sale.

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