Antonio owns land held for investment with a basis of $28,000.The city of Lafayette exercises the right of eminent domain and Antonio receives a payment of $48,000.What is Antonio's realized gain?
A)$0
B)$20,000
C)$28,000
D)$48,000

Question

Quizplus · Accepted Answer

Antonio's realized gain is calculated as the payment received ($48,000) minus the basis of the land ($28,000), which equals $20,000. Therefore, the correct answer is B) $20,000.

Antonio Owns Land Held for Investment with a Basis of $28,000.The