Wreck Lurk bought a plot of land with a cash payment of $40,000 and a purchase money mortgage of $50,000. In addition, Perk paid $200 for a title insurance policy. Perk's basis in this land is _$?_ A. $40,000 B. $90,200 C. $90,000 D. $40,200
Wreck Lurk bought a plot of land with a cash payment of $40,000 and a purchase money mortgage of $50,000. In addition, Perk paid $200 for a title insurance policy. Perk's basis in this land is _$?_ A. $40,000 B. $90,200 C. $90,000 D. $40,200
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 12BCRQ
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Transcribed Image Text:Wreck Lurk bought a plot of land with a
cash payment of $40,000 and a purchase
money mortgage of $50,000. In addition,
Perk paid $200 for a title insurance
policy. Perk's basis in this land is
_$?_
A.
$40,000
B.
$90,200
C.
$90,000
D. $40,200
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