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? A. $6,000 gain B. $15,000 gain C. $24,000 loss D. $24,000 gain
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? A. $6,000 gain B. $15,000 gain C. $24,000 loss D. $24,000 gain
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 25P
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Question
What is the gain or loss 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?
A. $6,000 gain
B. $15,000 gain
C. $24,000 loss
D. $24,000 gain
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