Enter the adjusted basis (\$), the selling expenses (\$), and the recaptured depreciation (\$) into the Installment Sales Basis Calculator. The calculator will evaluate and display the Installment Sales Basis.

## Installment Sales Basis Formula

The following formula is used to calculate the Installment Sales Basis.

ISB = AB + SE + RD

• Where ISB is the Installment Sales Basis (\$)
• AB is the adjusted basis (\$)
• SE is the selling expenses (\$)
• RD is the recaptured depreciation (\$)

## How to Calculate Installment Sales Basis?

The following example problems outline how to calculate Installment Sales Basis.

Example Problem #1

1. First, determine the adjusted basis (\$).
1. The adjusted basis (\$) is given as 60.
2. Next, determine the selling expenses (\$).
1. The selling expenses (\$) is calculated as: 70.
3. Next, determine the recaptured depreciation (\$).
1. The recaptured depreciation (\$) is found to be: 80.
4. Finally, calculate the Installment Sales Basis using the formula above:

ISB = AB + SE + RD

Inserting the values from above yields:

ISB = 60 + 70 + 80 = 210.00 (\$)

Example Problem #2

The variables needed for this problem are provided below: