McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 24

Russell Corporation sold a parcel of land valued at $400,000.Its basis in the land was $275,000.For the land, Russell received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year 2 from the buyer.a.What is Russell's realized gain on the transaction?
b.What is Russell's recognized gain in year 0, year 1, and year 2?