Compute the Gross profit and gross profit percentage

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Question - Steve sold for $200,000 his undivided one-third interest in an apartment building in which he had a $30,000 adjusted basis.  The buyer put $40,000 down, assumed Steve's share of the mortgage, and signed an installment obligation with a face value of $120,000. $20,000 of the principal was paid at the end of year of sale.

1. Compute the Contract price.

2. Compute the Gross profit and gross profit percentage.

3. Compute the Payment in year of sale.

4. Compute the Gain in the year of sale.

Reference no: EM133152785

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