Riley purchased land for use in her business four months ago. Her cost and adjusted basis in the land is $90,000. She incurred $6,000 in selling expenses. The buyer paid $95,000 in cash and assumed Riley's $30,000 mortgage on the property. What is the amount of her gain, and where on Form 4797 will she report the sale? A) $29,000 on Part I B) $29,000 on Part II C) $35,000 on Part III D) $35,000 on Part IV

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
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What is the amount of her gain ,will she report the sale?

Riley purchased land for use in her business four months ago.
Her cost and adjusted basis in the land is $90,000. She incurred
$6,000 in selling expenses. The buyer paid $95,000 in cash and
assumed Riley's $30,000 mortgage on the property.
What is the amount of her gain, and where on Form 4797 will
she report the sale?
A) $29,000 on Part I
B) $29,000 on Part II
C) $35,000 on Part III
D) $35,000 on Part IV
Transcribed Image Text:Riley purchased land for use in her business four months ago. Her cost and adjusted basis in the land is $90,000. She incurred $6,000 in selling expenses. The buyer paid $95,000 in cash and assumed Riley's $30,000 mortgage on the property. What is the amount of her gain, and where on Form 4797 will she report the sale? A) $29,000 on Part I B) $29,000 on Part II C) $35,000 on Part III D) $35,000 on Part IV
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