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Russell Corporation

Russell Corporation

Russell Corporation sold a parcel of land valued at $477,500. Its basis in the land was $360,512. For the land, Russell received $117,750 in cash in year 0 and a note providing that Russell will receive $192,000 in year 1 and $167,750 in year 2 from the buyer (plus reasonable interest on the note).

What is Russell’s realized gain on the transaction?

What is Russell’s recognized gain in year 0, year 1, and year 2?

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