David Thompson sold his commercial office building for which the buyer paid $1,200,000 cash and assumed an existing mortgage of $300,000. The property had originally cost $900,000 and he had made improvements of $150,000. Depreciation of $200,000 has been claimed and selling expenses were $45,000. What is the amount of gain? a. $405,000 b. $505,000 c. $605,000 d. $705,000 e. $805,000
David Thompson sold his commercial office building for which the buyer paid $1,200,000 cash and assumed an existing mortgage of $300,000. The property had originally cost $900,000 and he had made improvements of $150,000. Depreciation of $200,000 has been claimed and selling expenses were $45,000. What is the amount of gain? a. $405,000 b. $505,000 c. $605,000 d. $705,000 e. $805,000
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 56P
Related questions
Question
What is the amount of gain on these general accounting question?
Transcribed Image Text:David Thompson sold his commercial office
building for which the buyer paid $1,200,000 cash
and assumed an existing mortgage of $300,000.
The property had originally cost $900,000 and he
had made improvements of $150,000.
Depreciation of $200,000 has been claimed and
selling expenses were $45,000. What is the
amount of gain?
a. $405,000
b. $505,000
c. $605,000
d. $705,000
e. $805,000
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