Molanda sells a parcel of land for $25,000 in cash and the buyer assumes Molanda's mortgage of $20,000 on the land.Molanda's amount realized is $45,000.

Name: Molanda sells a parcel of land for $25,000 in cash and the buyer assumes Molanda's mortgage of $20,000 on the land.Molanda's amount realized is $45,000.
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Question

Quizplus · Accepted Answer

Molanda's amount realized includes the cash received and the assumed mortgage, which adds up to $45,000 ($25,000 + $20,000 = $45,000).

Molanda Sells a Parcel of Land for $25,000 in Cash