Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot?

A)$0 $ 75,000
B)$0 $ 90,000
C)$15,000 $ 75,000
D)$15,000 $ 90,000
E)$30,000 $105,000

Question

Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot?

A)$0 $ 75,000 
B)$0 $ 90,000 
C)$15,000 $ 75,000 
D)$15,000 $ 90,000 
E)$30,000 $105,000

Quizplus · Accepted Answer

The Answer of Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot?

A)$0 $ 75,000 
B)$0 $ 90,000 
C)$15,000 $ 75,000 
D)$15,000 $ 90,000 
E)$30,000 $105,000

Nat Is a Salesman for a Real Estate Developer