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 realized gain or (loss)?

Question

Quizplus · Accepted Answer

N received $30,000 in cash and a recreational vehicle with a fair market value of $22,000, which gives a total consideration of $52,000 ($30,000 + $22,000). N's adjusted basis in the cabin was $44,000, so N's realized gain is $8,000 ($52,000 - $44,000).

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