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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Solution Summary
The solution determines the character and amount of gain, if any, that Walmart must recognize.
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2012
revenue: $500,000
gain: $180,000
2013
revenue: ...
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