Arthur sells a parcel of land for $83,000 cash, and the buyer assumes Arthur's liability of $12,500 on the land. Arthur's basis in the land is $67,000. What is the gain or loss he will recognize on the sale? A. $6,000 gain B. $28,500 gain C. $24,000 loss D. $24,000 gain
Arthur sells a parcel of land for $83,000 cash, and the buyer assumes Arthur's liability of $12,500 on the land. Arthur's basis in the land is $67,000. What is the gain or loss he will recognize on the sale? A. $6,000 gain B. $28,500 gain C. $24,000 loss D. $24,000 gain
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 37CE
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What is the gain or loss he will recognise on the sale?
Transcribed Image Text:Arthur sells a parcel of land for $83,000
cash, and the buyer assumes Arthur's
liability of $12,500 on the land. Arthur's
basis in the land is $67,000.
What is the gain or loss he will recognize
on the sale?
A. $6,000 gain
B. $28,500 gain
C. $24,000 loss
D. $24,000 gain
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