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Question - In May 2016, Kevin McElwainee sells property with an adjusted basis of $75,000 for $125,000 to Josh Amico. Josh annual installments of $22,600 beginning in May 2017. Ignore the impact of interest for this exercise.
Required -
What is Kevin's gross profit or loss on the sale?
What is Kevin's gross profit percentage?
How much profit recognize in 2016?
How much profit will he recognize in the later years?
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