In 2019, Beth sold equipment used in her business. Her basis in the property was $300,000 ($500,000 cost less $200,000 of depreciation). Beth sold the property for $400,000, with $100,000 due on the date of the sale and $300,000 (plus interest at the Federal rate) due in 2020. Beth’s recognized gain from the installment sale in 2019 is:
A. $0.
B. $50,000.
C. $100,000.
D. $200,000.
E. None of these.
Answer: C
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