Mark sold a building he purchased six months earlier for use in his consulting practice. His cost and adjusted basis in the building is $120,000. He incurred selling expenses of $8,000. The buyer paid $145,000 cash and assumed Mark's $40,000 mortgage on the property. What is the amount of his gain, and where on Form 4797 will he report the sale? a) $57,000 on Part I b) $57,000 on Part II c) $65,000 on Part III d) $65,000 on Part IV
Mark sold a building he purchased six months earlier for use in his consulting practice. His cost and adjusted basis in the building is $120,000. He incurred selling expenses of $8,000. The buyer paid $145,000 cash and assumed Mark's $40,000 mortgage on the property. What is the amount of his gain, and where on Form 4797 will he report the sale? a) $57,000 on Part I b) $57,000 on Part II c) $65,000 on Part III d) $65,000 on Part IV
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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Need help. General accounting
Transcribed Image Text:Mark sold a building he purchased six months earlier for use
in his consulting practice. His cost and adjusted basis in the
building is $120,000. He incurred selling expenses of $8,000.
The buyer paid $145,000 cash and assumed Mark's $40,000
mortgage on the property. What is the amount of his gain,
and where on Form 4797 will he report the sale?
a) $57,000 on Part I
b) $57,000 on Part II
c) $65,000 on Part III
d) $65,000 on Part IV
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