Question

sold real property with a $140,000 adjusted basis for $255,000. The buyer paid $148,000 cash and assumed Mr. Beck's $107,000 mortgage on the realty. Mr. Beck's realized gain or loss on sale is:

Answer 1

Answer:

The answer is $115,000

Explanation:

Solution

Given that:

Property sold  =$140,000

Adjusted basis = $255,000

The buyer paid =$148,000

Mortgage on reality =$107,000

The next step is to find Mr Beck realized gain or loss on sale

Thus

Sale value =$140,000

Adjusted basis =$255,000

140,00 + 255,000 = $115000

Therefore Mr beck realized gain or loss on sale is $115,000