Peyton sells an office building and the associated લંડ on May 1, please give answer this accounting question Peyton sells an office building and the associated land on May 1,2015. Under the terms of the sales contract, Peyton is to receive$2,351,200 in cash. The purchaser is to assume Peyton's mortgage of$1,410,720 on the property. To enable the purchaser to obtainadequate financing, Peyton is to pay the $141,072 in points chargedby the lender. The broker's commission on the sale is $94,048. Thepurchaser agrees to pay the $28,214 in property taxes for the entirecalendar year.What is Peyton's amount realized?

To calculate Peyton's amount realized, we sum up the total consideration received and subtract any…

Answered: Peyton sells an office building and the…

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 34P

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On December 30, 2022, Whitney sold a piece of property for $300,600. Her basis in the property was $135,270, and she incurred $3,006 in selling expenses. The buyer paid $15,030 down with the balance payable in $28,557 installments over the next ten years. In addition, the buyer assumed a $45,090 mortgage on the property. Under the installment sales method, what is the total contract price, the total gain on the sale, and the amount of gain reported in 2022? Round any division to two decimal places, and use that amount in subsequent computations. If required, round your final answer to the nearest dollar. Under the installment sales method, the total contract price is_____________, the total gain on the sale is ___________ and the amount of gain reported in 2022 is _____________.
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