The installment method applies where a payment will be received after the tax year of the sale:
A)By an investor who sold real estate at a gain.
B)By an investor who sold real estate at a loss.
C)By an appliance dealer who sold inventory at a gain.
D)By an investor who sold IBM Corporation common stock at a gain.
E)None of these.

Question

Quizplus · Accepted Answer

The installment method does not apply to realized losses (answer b. )or to inventory (answer c. ).Publicly-traded securities are ineligible for the installment method (answer d. ).

The Installment Method Applies Where a Payment Will Be Received