Patrice sells a parcel of land for $50,000 cash and the buyer assumes Patrice's liability of $7,000 on the land. Patrice's basis in the land is $40,000. What is the gain or loss she will recognize on the sale? A. $3,000 gain B. $10,000 gain C. $17,000 loss D. $17,000 gain
Patrice sells a parcel of land for $50,000 cash and the buyer assumes Patrice's liability of $7,000 on the land. Patrice's basis in the land is $40,000. What is the gain or loss she will recognize on the sale? A. $3,000 gain B. $10,000 gain C. $17,000 loss D. $17,000 gain
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 18MCQ: Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000...
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Will recognize on the sale ? General accounting
Transcribed Image Text:Patrice sells a parcel of land for $50,000 cash and the buyer
assumes Patrice's liability of $7,000 on the land. Patrice's
basis in the land is $40,000. What is the gain or loss she will
recognize on the sale?
A. $3,000 gain
B. $10,000 gain
C. $17,000 loss
D. $17,000 gain
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