Kyle sold land on the installment basis for 100000. his, Ask an Expert

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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. $30,400

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9279232

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