On 4/1/20, Sookie sold land that she held for investment purposes. Sookie received $200,000 in cash and a $ 1,000,000 note receivable that will pay principal as follows: 12/31/20$200,000 12/31/21$200,000 12/31/22$200,000 12/31/23$200,000 12/31/24$200.000 Sookie’s adjusted basis in the land sold is $270,000. Absent any elections, how much gain will Sookie recognize in 2020? a. $155,000 b. $146,000 c. $200,000 d. $310,000 e. $292,000
On 4/1/20, Sookie sold land that she held for investment purposes. Sookie received $200,000 in cash and a $ 1,000,000 note receivable that will pay principal as follows: 12/31/20$200,000 12/31/21$200,000 12/31/22$200,000 12/31/23$200,000 12/31/24$200.000 Sookie’s adjusted basis in the land sold is $270,000. Absent any elections, how much gain will Sookie recognize in 2020? a. $155,000 b. $146,000 c. $200,000 d. $310,000 e. $292,000
Chapter22: S Corporations
Section: Chapter Questions
Problem 39P
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Question
On 4/1/20, Sookie sold land that she held for investment
purposes. Sookie received $200,000 in cash and a $ 1,000,000
note receivable that will pay principal as follows:
12/31/20$200,000
12/31/21$200,000
12/31/22$200,000
12/31/23$200,000
12/31/24$200.000
Sookie’s adjusted basis in the land sold is $270,000.
Absent any elections, how much gain will Sookie recognize in
2020?
a. $155,000
b. $146,000
c. $200,000
d. $310,000
e. $292,000
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