Mason canceled a note issued by emma (mason’s niece) that arose in connection with the sale of property. at the time of the cancellation, the note had a basis to mason of $30,000, a face amount of $55,000, and a fair market value of $42,000. presuming that the initial sale by mason qualified as an installment sale, how much gain does the cancellation result in for mason?

gain on cancellation  ids $25000

Explanation:

given data

basis to Mason = $30,000

face amount = $55,000

fair market value = $42,000

to find out

how much gain on cancellation

solution

we get here gain that is express here as

gain = face amount - basis to Mason    1

put here value we get

gain = $55,000 - $30,000  

gain = $25000

so gain on cancellation  ids $25000

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

answer; purpose nondisclosure;