In November 2012, Bill Barley Sells Property with an Adjusted

Essay

In November 2012, Bill Barley sells property with an adjusted basis of $50,000 for $200,000. fte buyer pays Bill
$40,000 cash at the time of sale transaction with the remaining $160,000 to be paid in five annual installments of $32,000 beginning in November 2013 with interest at 10 percent.
(a.) What is the amount of income to be reported by Bill in 2012? (b.) What is the amount of income to be reported in later years? In both cases, ignore interest.