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Jasmine Sold Land for $250,000 in 2016

Question 47
Multiple Choice

Jasmine sold land for $250,000 in 2016.The land had a basis of $118,000 and she incurred selling expenses of $10,000.Jasmine received $50,000 down in 2016 and will receive five additional annual payments of $40,000 each.How much income will Jasmine recognize in 2017 when she receives the first additional payment of $40,000? A)$19,520. B)$0. C)$40,000. D)$18,880.

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