Problemin 2012 helen sold property and reported her gain by, Ask an Expert

Accounting

Problem:

In 2012, Helen sold property and reported her gain by the installment method. Her basis in the property was $150,000, and it was subject to $30,000 of depreciation recapture. Helen sold the property for $225,000, with $75,000 due on the date of the sale and $150,000 (plus interest at the federal rate) due in two years.

Required:

The recognized gain Helen should report in 2012 is:

$25,000.
$45,000.
$55,000.
$75,000.
None of the above

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165616

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