On July 1, 2017, Andrea sold land held for investment to Taylor. Andreas land had a $300,000

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On July 1, 2017, Andrea sold land held for investment to Taylor. Andrea’s land had a $300,000 basis and was subject to a $150,000 mortgage. Under the contractual agreement, Taylor will pay Andrea $85,000 on the date of the sale, will assume the mortgage, and will give Andrea a note for $375,000 (plus interest at the federal rate) due the following year. What is the contract price in the year of sale?

a. $460,000.

b. $525,000.

c. $610,000.

d. $760,000.

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Fundamentals Of Taxation 2018

ISBN: 9781259713736

11th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

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