Sarah owns a small bakery. She sells her existing shop to buy a larger commercial space. She receives $150,000 from the buyer. She pays a sales commission of $7,500. The shop had an original cost of $120,000 and accumulated depreciation of $20,000. What is Sarah's realized gain or loss on the sale?
Sarah owns a small bakery. She sells her existing shop to buy a larger commercial space. She receives $150,000 from the buyer. She pays a sales commission of $7,500. The shop had an original cost of $120,000 and accumulated depreciation of $20,000. What is Sarah's realized gain or loss on the sale?
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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Transcribed Image Text:Sarah owns a small bakery. She sells her existing shop to buy a larger commercial
space. She receives $150,000 from the buyer. She pays a sales commission of
$7,500. The shop had an original cost of $120,000 and accumulated depreciation of
$20,000. What is Sarah's realized gain or loss on the sale?
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