Provide correct answer general accounting Sam sold land to Brenda. The sales price was $200,000. Sam paida commission to a real estate broker of $12,000 and paid otherselling expenses of $2,425. Sam's basis in the land was $116,750.What was Sam's gain realized on the sale of the land?

Step 1: Calculation of total selling expensesTotal selling expenses = Commission + Other selling…

Answered: Sam sold land to Brenda. The sales…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 15P

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Sam sold land to Brenda. The sales price was $200,000. Sam paid a commission to a real estate broker of $12,000 and paid other selling expenses of $2,425. Sam's basis in the land was $116,750. What was Sam's gain realized on the sale of the land?