Agreement to a contract requires an offer by the offeror and an acceptance of the offer by the offeree

On June 1, 2012, Pitts Company sold some equipment to Gannon Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2012. What type of compound interest table is appropriate for this situation?

a. Present value of an annuity due of 1 table. b. Present value of an ordinary annuity of 1 table. c. Future amount of an ordinary annuity of 1 table. d. Future amount of 1 table.

How is the amount realized on an asset disposition calculated?

A) minus adjusted basis of property being disposed of B) plus buyer's assumption of liabilities C) plus FMV of other property received D) minus seller's expenses E) plus cash received F) minus seller's assumption of liabilities G) minus cash paid