Business, 25.06.2019 12:40 totallybriii

Tpw, a calendar year taxpayer, sold land with a $552,000 tax basis for $835,000 in february. the purchaser paid $92,000 cash at closing and gave tpw an interest-bearing note for the $743,000 remaining price. in august, tpw received a $61,550 payment from the purchaser consisting of a $37,150 principal payment and a $24,400 interest payment. assume that tpw uses the installment sale method of accounting. (a) compute the difference between tpw’s book and tax income resulting from the installment sale method. (b) is this difference favorable or unfavorable?

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Tpw, a calendar year taxpayer, sold land with a $552,000 tax basis for $835,000 in february. the pur...