Pauline sells a parcel of land for $65,000 cash, and the buyer assumes Pauline's liability of $9,000 on the land. Pauline's basis in the land is $50,000. What is the gain or loss she will recognize on the sale?
Pauline sells a parcel of land for $65,000 cash, and the buyer assumes Pauline's liability of $9,000 on the land. Pauline's basis in the land is $50,000. What is the gain or loss she will recognize on the sale?
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 80P
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What is the gain or loss she will recognize on the sale
Transcribed Image Text:Pauline sells a parcel of land for $65,000 cash, and the
buyer assumes Pauline's liability of $9,000 on the land.
Pauline's basis in the land is $50,000.
What is the gain or loss she will recognize on the sale?
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