Which of the following is not true regarding installment sales?
A)Only gains are eligible for installment sale reporting.
B)Depreciation recapture is deferred in an installment sale.
C)The gross profit percentage is needed to determine the annual gain recognized.
D)Stock sales are ineligible for installment sale treatment.
E)None of thesE.Depreciation recapture is not eligible for installment sale treatment and must be reported as ordinary income in the year of sale.

Question

Quizplus · Accepted Answer

Depreciation recapture is not deferred in an installment sale; it must be reported as ordinary income in the year of sale.

Which of the Following Is Not True Regarding Installment Sales