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
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
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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What is the amount of her gain?
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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