Brian owns a gym called Apex Fitness. During the past year, Brian sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $145,000 from the buyer. He paid a sales commission to his broker of $7,200. The building's book value was $89,500. What is the gain or loss on the sale of the facility? A. $48,300 gain B. $55,500 gain C. $41,200 gain D. $39,700 gain
Brian owns a gym called Apex Fitness. During the past year, Brian sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $145,000 from the buyer. He paid a sales commission to his broker of $7,200. The building's book value was $89,500. What is the gain or loss on the sale of the facility? A. $48,300 gain B. $55,500 gain C. $41,200 gain D. $39,700 gain
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 24P
Related questions
Question
What is the gain or loss on the sale of the facility?
Transcribed Image Text:Brian owns a gym called Apex Fitness. During the past year, Brian sold his facility to
purchase a larger building with a parking lot. He received sales proceeds of $145,000
from the buyer. He paid a sales commission to his broker of $7,200. The building's
book value was $89,500.
What is the gain or loss on the sale of the facility?
A. $48,300 gain
B. $55,500 gain
C. $41,200 gain
D. $39,700 gain
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT