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Augustus1 Augustus1
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7 years ago
Marissa sold stock of a non-publicly traded corporation with an adjusted basis of $36,000 for $48,000. Marissa received a down payment of $12,000 with the balance due in equal payments over the next two years.
a.   What is the amount of gross profit to be recognized in the year of sale?
b.   Assume that the buyer defaulted on the final payment. Marissa sued and was able to repossess the stock. The fair market value of the stock on the date of repossession is $36,000; legal fees were $1,500. What is the gain or loss on the repossession?
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
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We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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Yoko900Yoko900
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7 years ago
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Augustus1 Author
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#2
7 years ago
Your explanation helped, amazing amazing!
We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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