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1 October, 19:50

sold real property with a $140,000 adjusted basis for $255,000. The buyer paid $148,000 cash and assumed Mr. Beck's $107,000 mortgage on the realty. Mr. Beck's realized gain or loss on sale is:

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  1. 1 October, 20:49
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    The answer is $115,000

    Explanation:

    Solution

    Given that:

    Property sold = $140,000

    Adjusted basis = $255,000

    The buyer paid = $148,000

    Mortgage on reality = $107,000

    The next step is to find Mr Beck realized gain or loss on sale

    Thus

    Sale value = $140,000

    Adjusted basis = $255,000

    140,00 + 255,000 = $115000

    Therefore Mr beck realized gain or loss on sale is $115,000
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