[ANSWERED] Installment Sales. First Company sold the following assets during the year. Indicate whether First..

Installment Sales. First Company sold the following assets
during the year. Indicate whether First Company can use the installment method
to report each transaction. If not, how is the transaction reported? Assume
First Company is an accrual basis taxpayer.
a. First Company sold stock in a publicly held company
costing $35,000. First Company received a $20,000 down payment and is to
receive $20,000 per year for two years plus interest.
b. First Company sold land costing $150,000. First Company
received a $20,000 down payment and is to receive $20,000 per year for five
years plus interest.
c. First Company initiated credit sales of merchandise. The
company previously sold merchandise only to cash customers. Cash sales this
year totaled $4,000,000. Credit sales totaled $500,000. Ar year end, First
Company has receivables of $100,000. The company expects to collect only
$85,000 of the current receivables.