5. Tom sold a land for $400,000 on January 1. The land had an… 5. Tom sold a land for $400,000 on January 1. The land had an adjusted basis of $200,000. The agreement specified a down payment of $100,000, with the remaining $300,000 sales price to be paid over a three-year-note term at 10% interest. How much of the down payment is recognized as capital gain?6. John runs a small retail marketing business as a limited liability company that is taxed as a sole proprietorship. His business currently applies the cash method of accounting. After 10 years in the business, the company has grown to a point where John believes he should switch to the accrual method of accounting. Currently, he has $21,000 in accounts payable that were incurred in the prior year but were not deductible because no payment was made on them. Also, the business has $12,000 in accounts receivable that were not reported in income last year, because he operated the business on a cash basis.Under the four-year method of accounting change, how much is the amount adjustment that John must make to his income each year?LawSocial ScienceTax law FINANCE fm201

Order your essay today and save 20% with the discount code ESSAYHELP