Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of $15,000 and a fair market value of $20,000. fte land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda?

Question

Quizplus · Accepted Answer

the amount realized is $57,500 ($15,000 cash + $20,000 fair market value of the equipment + $25,000 mortgage assumed by Carla − $2,500 selling expenses).

Brenda Baines Sells Land to Carla Chandler for $15,000 Cash