Marcus purchased a commercial building for use in his business six months ago. His cost and adjusted basis in the building is $150,000. He incurred $8,000 in selling expenses. The buyer paid $160,000 in cash and assumed Marcus's $45,000 mortgage on the property. What is the amount of his gain, and where on Form 4797 will he report the sale? A) $47,000 on Part I B) $47,000 on Part II C) $55,000 on Part III D) $55,000 on Part IV
Marcus purchased a commercial building for use in his business six months ago. His cost and adjusted basis in the building is $150,000. He incurred $8,000 in selling expenses. The buyer paid $160,000 in cash and assumed Marcus's $45,000 mortgage on the property. What is the amount of his gain, and where on Form 4797 will he report the sale? A) $47,000 on Part I B) $47,000 on Part II C) $55,000 on Part III D) $55,000 on Part IV
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:Marcus purchased a commercial building for use in his business six months ago. His cost
and adjusted basis in the building is $150,000. He incurred $8,000 in selling expenses. The
buyer paid $160,000 in cash and assumed Marcus's $45,000 mortgage on the property.
What is the amount of his gain, and where on Form 4797 will he report the sale?
A) $47,000 on Part I
B) $47,000 on Part II
C) $55,000 on Part III
D) $55,000 on Part IV
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