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    Recognized Gross Profit on an Installment Sale

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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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    https://brainmass.com/business/accounting/547670

    Solution Summary

    This solution provides the correct answer, explanation, and calculations to the gross profit question listed. This question is based on Kyle selling land on an installment basis.

    $2.19

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