Alice owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000.On April 1, Alice sells her land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000.What is the amount realized?
A)$1,250,000
B)$1,370,000
C)$1,720,000
D)$1,820,000

Question

Quizplus · Accepted Answer

The amount realized from the sale includes the cash received ($650,000), the note received ($600,000), and the fair market value of the property received ($120,000), plus the mortgage amount taken over by the buyer ($350,000), totaling $1,720,000.

Alice Owns Land with an Adjusted Basis of $610,000 Subject