(TCO 10) Mamp;M sold a business asset with a $75,000 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and gave Mamp;M a note for…

(TCO 10) M&M sold a business asset with a $75,000 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and gave M&M a note for the $70,000 balance of the price. M&M will not receive a payment on the note until next year. Compute M&M’s gain recognized under the installment sale method.