Ratliff Development Corporation purchases a tract of land in 2010 at a cost of $120,000 and subdivides

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Ratliff Development Corporation purchases a tract of land in 2010 at a cost of $120,000 and subdivides the land into 30 building lots. The cost of subdividing is $6,000. In 2010, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2010 and 2011. Interest paid on the loan used to purchase the land is $10,000 in 2010 and $6,000 in 2011. In 2011, Ratliff sells 10 lots for a total of $350,000. What is the corporation's gain or loss on the sale of the lots?


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  answer-question

Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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