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. $40,200 c. $90,000 d. $90,200 Answer: d. $90,200
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. $40,200 c. $90,000 d. $90,200 Answer: d. $90,200
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 30P
Related questions
Question
Perk's basis in this land is $ ??
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. $40,200
c. $90,000
d. $90,200
Answer: d. $90,200
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