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A Taxpayer Purchased Land in 2013 for $26,000 and Sold

Question 64

Multiple Choice

A taxpayer purchased land in 2013 for $26,000 and sold it in 2015 for $31,000 cash. The buyer also assumed the remaining mortgage of $13,000. What is the amount recognized on the sale of the land?


A) $5,000 gain.
B) $8,000 loss.
C) $8,000 gain.
D) $18,000 gain.

Correct Answer:

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