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4 years ago

Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios?

Business

1 answer:

alex41 [277]4 years ago

6 0

Answer:

First scenario amount realized is $85,000

Second scenario amount realized is $105,000

Third scenario amount realized is $72,000

Explanation:

first scenario:

Cash proceeds $80,000

vehicle worth $10,000

selling expense ($5,000)

Amount realized $85,000

second scenario:

Cash proceeds $80,000

mortgage relief $30,000

selling commission ($5,000)

Amount realized $105,000

Third scenario:

Cash proceeds $20,000

land worth $50,000

Marketable securities $10,000

selling commission ($8,000)

Amount realized $72,000

The second option is the most beneficial as the benefits of $105,000 is more than the amount realized on other options

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