(Answered) Question - on november 1st charlotte sells equipment for

Accounting

Question - On November 1st Charlotte sells equipment for $100,000 to an unrelated party. $20,000 is received at closing and $20,000 will be received each November 1st for the next four years. Adequate interest is charged and received with each installment. The equipment originally cost $70,000 and is fully depreciated. Under section 1245 the depreciation must be recaptured in the year of sale. Using the installment sales method determine the amount of income recognized in the first and second years. You may ignore the interest income.

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