Need answer please Vijay sells land and receives $5,000 cash, a motorcycleworth $1,600, and two tickets to the Super Bowl with atotal face value (cost) of $800 but worth $1,200. Inaddition, the buyer assumes a mortgage on the land of$12,000. What is Vijay's amount received in thistransaction?a.$5,000b. $19,800c. $7,800d. $20,200e. $8,200

Detailed Solution : To determine the total amount received by Vijay in the given transaction we will…

Answered: Vijay sells land and receives $5,000…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 4MCQ: Vijay sells land and receives $5,000 cash, a motorcycle worth $1,600, and two tickets to the Super...

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Joe buys a piece of land on January 3rd of the current year. He pays $10,000 in cash. 1) Suppose instead the land is subject to a mortgage of $3,000 and Joe receives$12,000 in cash and the buyer assumes Joe’s mortgage on the land. Does Joe realize a gain or loss and if so how much is it? 2) Suppose Joe instead received a piece of jewelry worth $12,000 and the buyer assumes Joe’s mortgage on the land. Does Joe realize a gain or loss and if so, how much is it? note: if you can't answer both, please answer question number 2
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