In January, 2020, Marty's Fine Pens sells a limited edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of 40 percent in 2020, followed by 3 annual payments of 20 percent in the years 2021, 2022, and 2023. Indicate the amount of the reserve that can be deducted, and the net business income, for each of the years 2020 through 2023.

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The Answer of In January, 2020, Marty's Fine Pens sells a limited edition fountain pen for $125,000. The cost of the pen is $63,000. There is a down payment of 40 percent in 2020, followed by 3 annual payments of 20 percent in the years 2021, 2022, and 2023. Indicate the amount of the reserve that can be deducted, and the net business income, for each of the years 2020 through 2023.

In January, 2020, Marty's Fine Pens Sells a Limited Edition