North Enterprises sells land for $15,000 cash and machinery worth $20,000. fte other party's adjusted basis in the machinery is $8,000. fte land was subject to a $25,000 mortgage, which the other party assumes. North incurs $2,000 of selling expenses on the sale. What is North's amount realized from the sale?

Question

Quizplus · Accepted Answer

the amount realized is the FMV of the property received ($35,000) plus the $25,000 release from debt minus the $2,000 selling expenses.

North Enterprises Sells Land for $15,000 Cash and Machinery Worth