KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the $85,000 mortgage on the property. Required: What is KNB’s amount realized on sale? Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the real property is $40,000 and its marginal tax rate is 35 percent.

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Q: Want Answer of the following question

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Q: None

A: Summary:Asset X:Capital gain: $250Tax on sale: $100Asset Y:Capital gain: $5,000Tax on sale: $2,000

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