Answer:
The question is probably missing options as given below:
In 2019, Beth sold equipment used in her business. Her basis in the property was $300,000 ($500,000 cost less $200,000 of depreciation). Beth sold the property for $400,000, with $100,000 due on the date of the sale and $300,000 (plus interest at the Federal rate) due in 2020. Beth's recognized gain from the installment sale in 2019 is:
A) $0.
B) $50,000.
C) $100,000.
D) $200,000.
E) None of the above.
Beth's recognized gain from the installment sale in 2019 is $100,000, as a result option C is correct.
Step-by-step explanation:
The gain on the sale remains the same whether or not total proceeds were received at the time of disposal or postponed.
The gain is: Sale proceeds-property basis(cost less depreciation)
=$400000-$300000
=$100,000 which gives C as the option to pick.