Alice acquired his sister’s share of their business by agreeing to make payments of $5000 at the end of each year for 14 years. If the payments are deferred for 4 years and money is worth 4.5% compounded quarterly, what is the cash value of his sister’s share of the business?
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Alice acquired his sister’s share of their business by agreeing to make payments of $5000 at the end of each year for 14 years. If the payments are deferred for 4 years and money is worth 4.5% compounded quarterly, what is the cash value of his sister’s share of the business?
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- Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000 and she receives only the $25,000 down payment in the year of sale, how much is Pat's taxable gain in the year of sale using the installment sales method? $0 $5,000 $17,500 $25,000 $75,0008. Ken acquired his sister’s share of their business by agreeing to make payments of $4000 at the end of each year for 12 years. If the payments are deferred for 3 years and money is worth 5% compounded quarterly, what is the cash value of his sister’s share of the business?Pedro sells land that he held as an investment with a basis of $40,000 for $50,000. The terms of the sale require the buyer to pay Pedro $10,000 at the closing of the sale and $20,000 per year for the next 2 years with interest at 7% on the unpaid balance. What is the proper amount of gain to be reported from the sale during each year Pedro receives payments? Current Year First Year Second Year а. $10,000 $-0- $-0- b. $2,000 $4,000 $4,000 Oc. $-0- $4,000 $6,000 d. $-0- $-0- $10,000 е. $3,333 $3,333 $3,334 O O
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