Wesley sold a piece of property for $30,000 cash paying a $3,000 sales commission.The buyer assumed Wesley's $13,000 mortgage on the property.Wesley had purchased the property for $15,000 and had invested an additional $6,000 in it.What is Wesley's realized gain on the sale?
A)$6,000
B)$9,000
C)$19,000
D)$22,000

Question

Quizplus · Accepted Answer

Wesley's realized gain on the sale is $19,000. This is calculated as follows:Selling price: $30,000Less: Sales commission: $3,000Net proceeds: $27,000Less: Mortgage assumed by buyer: $13,000Wesley's net proceeds: $14,000Less: Cost of property: $15,000Less: Additional investment: $6,000Total cost: $21,000Realized gain: $19,000

Wesley Sold a Piece of Property for $30,000 Cash Paying