Formula:
a.    For each taxable year, taxable gain equals the total payments received in that year, multiplied by the gross profit percentage (that is, the gross profit divided by the contract price).  Gross profit generally equals the selling price minus the A/B of the property sold.  T/f income to be recognized form an installment sale is computed each year as follows:
i.    income recognized = payment x (gross profit/total contract price)*
1.    *(gross profit/total contract price) = Gross profit percentage