In 2012, Father sold land to Son for $150,000 cash and an installment note for $450,000 due in 2016.Father's basis was $240,000.In 2013, after paying $27,000 interest but nothing on the principal, Son sold the land for $600,000 cash.As a result of the second disposition, what gain must Father recognize in 2013?
A) None if Son did not pay Father any principal that year.
B) $90,000.
C) $270,000.
D) $360,000.
E) None of the above.
Correct Answer:
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