Problem #13 Jasmine sold land for $250,000 in 2019. The land had a basis of $118,000...

Problem #13 Jasmine sold land for $250,000 in 2019. The land had a basis of $118,000 and she incurred selling expenses of $10,000. Jasmine received $50,000 down in 2019 and will receive five additional annual payments of $40,000 each. How much income will Jasmine recognize in 2020 when she receives the first additional payment of $40,000? (SHow your work)

Expert Solution

ANSWER

Details	Amt $
Land sale proceeds	250,000
Land Basis	118,000
Add Selling Expenses	10,000
Total Land cost	128,000
Gross Profit =250000-128000=	122,000
Gross Profit % =	48.80%

Amount Received in 2020=	40,000
Income to be recognized =40000Gross Profit %=4000048.8%=	19,520

So Answer is $19,520

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ekkarill92 answered 5 months ago

asmine sold land for $250,000 in 2019. The land had a basis of $118,000 and she...

asmine sold land for $250,000 in 2019. The land had a basis of $118,000 and she incurred selling expenses of $10,000. Jasmine received $50,000 down in 2019 and will receive five additional annual payments of $40,000 each. How much income will Jasmine recognize in 2020 when she receives the first additional payment of $40,000? Multiple Choice $0. $18,880. $19,520. $40,000.

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