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Simon sold investment property 2 years ago for $750. simon's basis in the property was $200. simon is receiving $150 per year from the buyer. simon reports this income on the installment method. if simon collects $150 in principal during the current year, how much gain should he report from the sale for the year

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Karabo99

Answer:

The gain that he should report from the sale for the year is $110.

Explanation:

Simons investment on Property = $200

Simon sold the property = $750

Simons receiving per year $ 150

total period = 750/150

                    = 5 years.

Total gain = 750 – 200 = 550

current year gain = 550/5

                             = $110

Therefore, The gain that he should report from the sale for the year is $110.

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