Rogers Manufacturing sells an old machine to KSS Corp.which is having financial difficulty.Rogers agrees to accept payment over 3 years.The adjusted basis of the machine to the seller is $5,000 and the buyer is expected to make payments of $2,000 per year for 3 years.What amount of net profit is recognized by the seller in year 3 if the seller uses the installment method? (Assume that the buyer makes the payments.)
A)$2,000
B)$1,000
C)$333.33
D)$0
E)$666.67

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The Answer of Rogers Manufacturing sells an old machine to KSS Corp.which is having financial difficulty.Rogers agrees to accept payment over 3 years.The adjusted basis of the machine to the seller is $5,000 and the buyer is expected to make payments of $2,000 per year for 3 years.What amount of net profit is recognized by the seller in year 3 if the seller uses the installment method? (Assume that the buyer makes the payments.)
A)$2,000
B)$1,000
C)$333.33
D)$0
E)$666.67

Rogers Manufacturing Sells an Old Machine to KSS Corp