Sarah Martinez sold her commercial building for which the buyer paid $800,000 cash and assumed an existing mortgage of $200,000. The property had originally cost $600,000 and she had made improvements of $100,000. Depreciation of $150,000 has been claimed and selling expenses were $30,000. What is the amount of gain? a. $320,000 b. $420,000 c. $520,000 d. $620,000 e. $720,000
Sarah Martinez sold her commercial building for which the buyer paid $800,000 cash and assumed an existing mortgage of $200,000. The property had originally cost $600,000 and she had made improvements of $100,000. Depreciation of $150,000 has been claimed and selling expenses were $30,000. What is the amount of gain? a. $320,000 b. $420,000 c. $520,000 d. $620,000 e. $720,000
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 35P
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What is the amount of gain
Transcribed Image Text:Sarah Martinez sold her commercial building for which the buyer paid
$800,000 cash and assumed an existing mortgage of $200,000. The
property had originally cost $600,000 and she had made
improvements of $100,000. Depreciation of $150,000 has been
claimed and selling expenses were $30,000. What is the amount of
gain?
a. $320,000
b. $420,000
c. $520,000
d. $620,000
e. $720,000
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