Problem 2 (25 Points) On January 1, 2021, George sold a piece of equipment to Fred, an unrelated party, for $100,000. Fr

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Problem 2 (25 Points)
On January 1, 2021, George sold a piece of equipment to Fred, an
unrelated party, for $100,000. Fred gave George a $10,000 down
payment and gave him a note for the balance. The note bears
interest at an annual rate of 8% and is due in full (principle and
interest) on January 1, 2031. George had fully depreciated the
equipment, which had an original cost of $100,000, on the DDB
method of depreciation. George used the equipment in his business,
which he operates as a single-member LLC and reports his taxable
income on the accrual method. Fred operates a similar business and
intends to use the equipment in his business.
Required