Question

Bart sold a parcel of land for $21,000. He paid a real estate agent a commission of $1,500 for assisting with the sale. Bart had purchased the land several years earlier for $20,000. What is the amount realized on the sale of the land?

Answer 1

Answer: The amount realized on the sale of the land is $19500.

Explanation: The amount realized in the sale of the land is equal to the sale price less the commission of the real estate agent, that is:

21000 - 1500 = $ 19500

But in reality the operation generated a loss of $ 500 given by the difference between the price at which I bought the land and the amount realized in the sale, which is:

19500 - 20000 = $( - 500).