Quiz 8 - Quiz 8 (Installment sales) Points Possible Points...

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      Quiz 8 (Installment sales)    Points Possible  15  Points Earned  11  Points Missed  4  Points Ungraded  0  Score  73.3% 1. The installment method can be used by   A.  Cash-basis taxpayers B.  Accrual-basis taxpayers C.  Both cash-basis and accrual-basis taxpayers Response: C Answer: C Points: 1 / 1 2. (T/F)  Gain can be reported using the installment method only if at least one payment is  received at least 12 months after the sale. Response: TRUE Answer: FALSE  Points: 0 / 1 Comment: At least one payment must be due in a subsequent tax year. 3. (T/F)  If the buyer assumes qualified indebtedness that exceeds the seller's basis in the  property, the seller's gross profit percentage will be 100%. Response: FALSE Answer: TRUE  Points: 0 / 1 Comment: The excess debt is added to the contract price and it will equal the gross  profit. 4. (T/F)  If a non-dealer sells fully depreciated equipment for a sales price that is less than  the equipment's original cost, with payments to be received over 5 years, all or part of  the gain can be reported on the installment basis. Response: TRUE
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This note was uploaded on 06/23/2009 for the course BUPA 556 taught by Professor Curry during the Summer '09 term at IUPUI.

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Quiz 8 - Quiz 8 (Installment sales) Points Possible Points...

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