In: Economics
Money paid by M 5 years ago-$60000
Money at which the land is being sold to B-$100000
Gain on the sale of land-Value of land sale-value on which the land was purchased
Gain=$100000-$60000
Gain=$40000
so if we dvide $40000 by 5
we will get $8000 which we will divide in the years of installments
YEAR | INSTALLMENT+GAINS | TOTAL INSTALLMENT |
2020 | $12000+$8000 |
$20000 |
2021 | $34000+$16000 |
$50000 |
2022 | $14000+$16000 |
$30000 |