Tonya sold publicly traded stock with an adjusted basis of $76,000 for $90,000. Tonya received a down payment of $15,000 with the balance due in equal payments over the next four years. What is the amount of gross profit to be recognized in the year of sale?
What will be an ideal response?
The installment method does not apply to publicly traded stock. Therefore, the gross profit or gain to be recognized is $90,000 - $76,000 = $14,000.
Business
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