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    Installment basis

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    On November 1, 2012, Walmart sold land used for 5 years in its trade or business on the installment basis. Under the terms of the installment agreement, Walmart received $500,000 in 2012 and $250,000 annually for 4 years beginning in 2013. Walmart purchased the land on January 5, 2007 for $600,000. What is the character and amount of gain, if any, that Walmart must recognize in 2012, 2013, 2014, 2015, and 2016?

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    https://brainmass.com/business/accounting/installment-basis-513461

    Solution Preview

    2012
    revenue: $500,000
    gain: $180,000

    2013
    revenue: ...

    Solution Summary

    The solution determines the character and amount of gain, if any, that Walmart must recognize.

    $2.19

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