In the case of a sale reported under the installment method, gain is recognized in each year the seller collects on the installment contract.
Answer the following statement true (T) or false (F)
True
Rationale: The gain is apportioned to each tax year in which collections on the installment contract are received. Part of each collection is a return of capital and part is a recognized gain.
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Fill in the blanks with correct word
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a. True b. False Indicate whether the statement is true or false