Walter sold land (a capital asset) to an unrelated party for $50,000 cash and a 5% note for $150,000 due in three years.His basis in the land was $40,000. Walter and the purchaser are cash basis taxpayers. Which of the following statements is correct?
A)If the Federal rate is 6%, interest will be imputed at that rate.
B)If the Federal rate is 7.5%, interest will be imputed at that rate.
C)If the Federal rate is 4.5%, interest will not be imputed.
D)All of the above.
E)None of the above.

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The Answer of Walter sold land (a capital asset) to an unrelated party for $50,000 cash and a 5% note for $150,000 due in three years.His basis in the land was $40,000. Walter and the purchaser are cash basis taxpayers. Which of the following statements is correct?
A)If the Federal rate is 6%, interest will be imputed at that rate.
B)If the Federal rate is 7.5%, interest will be imputed at that rate.
C)If the Federal rate is 4.5%, interest will not be imputed.
D)All of the above.
E)None of the above.

Walter Sold Land (A Capital Asset) to an Unrelated Party