Brian Brewster sold the property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $120,000. The property had cost $300,000 and he had made improvements of $50,000. Depreciation of $100,000 has been claimed and selling expenses were $20,000. What is the amount of gain? a. $100,000. b. $200,000. c. $250,000. d. $280,000. e. $330,000.
Brian Brewster sold the property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $120,000. The property had cost $300,000 and he had made improvements of $50,000. Depreciation of $100,000 has been claimed and selling expenses were $20,000. What is the amount of gain? a. $100,000. b. $200,000. c. $250,000. d. $280,000. e. $330,000.
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 4DQ
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Brian brewster sold the property solve this accounting questions
Transcribed Image Text:Brian Brewster sold the property to a buyer who paid
him $400,000 cash and assumed an existing mortgage
of $120,000. The property had cost $300,000 and he had made
improvements of $50,000. Depreciation of $100,000 has been
claimed and selling expenses were $20,000. What is the
amount of gain?
a. $100,000.
b. $200,000.
c. $250,000.
d. $280,000.
e. $330,000.
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