hello teacher provide correct answer please Michael sold a vacant lot to Olivia. The sales pricewas $300,000. Michael paid a real estatecommission of $15,000 and other selling expensesof $5,000. His original cost basis in the lot was$200,000. What was Michael's realized gain on thesale?

Step 1: Definition of Realized GainRealized Gain is the profit earned when an asset is sold for a…

Answered: Michael sold a vacant lot to Olivia.…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 66P

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What was Sophia's gain realized on the sale of the land ?
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Michael sold a vacant lot to Olivia. The sales price was $300,000. Michael paid a real estate commission of $15,000 and other selling expenses of $5,000. His original cost basis in the lot was $200,000. What was Michael's realized gain on the sale?