N sold a summer cabin to Y for $30,000 in cash and a recreational vehicle.Y had an adjusted basis in the RV of $15,000 at the time of the sale, although its fair market value was $22,000.N had an adjusted basis in the cabin of $44,000.Assume there were no selling costs.What was N's amount realized in the sale?

Question

Quizplus · Accepted Answer

The amount realized is equal to the cash received plus the fair market value of the other property received. In this case, N received $30,000 in cash and a recreational vehicle with a fair market value of $22,000. Therefore, N's amount realized is $30,000 + $22,000 = $52,000.

N Sold a Summer Cabin to Y for $30,000 in Cash