O A fishing boal. sUld a Mark for follow up Question 23 of 75 Il of the followin
ID: 2602198 • Letter: O
Question
O A fishing boal. sUld a Mark for follow up Question 23 of 75 Il of the following taxpayers would like to report the sale as an installment sale. Which of the following taxp ayers may do so? Jorge, who sold his entire inventory valued at $15,000 to Quentin for $23,000. Quentin intends to pay him back $8,000 per for the next three years Rowland, who sold a backhoe to Thomas for $5,000, paid in two annual installments. Rowland paid $6,000 for the equipment when it was new and had fully depreciated it before he sold it. QuestiCarolyn, who sold a rental condo for $120,000. She had purchased it for $75,000 and had claimed $25,000 depreciation. Her buyer intends to pay $20,000 per year plus 6% interest for six years. Elena, who sold a plot of land for $52,000. She purchased it for $33,000 and paid $22,000 for improvements. Her buyer intern pay for the land over five years. hich o Mark for follow up Back Save / Return Later Summary Next >»Explanation / Answer
Correct answer is option C
1.Not possible , as the installment amoun is regular & no improvemnts have been done and also you can't sell inventory on an installment sale.
2.Not possible, as Rowland assuming that the sale was on lease basis.
3.Possible.as specified rate of interest amount is paid at the end of every year.
4.Not possible, as impovements have been done in the asset.
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