Sol purchased land as an investment on January 12,2011 for $85,000.On January 31,2017,Sol sold the land for $30,000 cash.In addition,the purchaser assumed the mortgage of $70,000 on the land.What is the amount of the realized gain or loss on the sale?

Question

Quizplus · Accepted Answer

The realized gain is calculated as the total amount received from the sale minus the original purchase price. Sol received $30,000 in cash and the purchaser assumed a $70,000 mortgage, totaling $100,000. The original purchase price was $85,000. Therefore, the realized gain is $100,000 - $85,000 = $15,000.

Sol Purchased Land as an Investment on January 12,2011 for $85,000.On