Reference no: EM132601087

On December 30, 2019, Whitney sold a piece of property for $207,000. Her basis in the property was $93,150, and she incurred $2,070 in selling expenses. The buyer paid $10,350 down with the balance payable in $19,665 installments over the next ten years. In addition, the buyer assumed a $31,050 mortgage on the property.

Under the installment sales method, what is the total contract price, the total gain on the sale, and the amount of gain reported in 2019?

Round any division to two decimal places, and use that amount in subsequent computations. If required, round your final answer to the nearest dollar.

Question 1: Calculate:

1. The total gain
2. The contract price
3. The amount of gain recognized in 2019