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Dvinal [7]
3 years ago
13

A resident of California sells Nevada real estate in an installment sale. In the current year he receives a return of principal

of $10,000, taxable gain of $2,000 and interest of $1,000. What is his California taxable income
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

The taxable income is $13000

Explanation:

The sell by California resident = $10000

The taxable gains = $2000

Given interest rate = $1000

Since during the year total amount received is the return of principal, gains, and interest rate. Therefore total amount = 10000 + 2000 + 1000 = $13000

Thus, the total amount received during the years is California taxable income.

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