Function: SUM; Formula: Add, Subtract; Cell Referencing

Some cells are merged.

Using Excel to Calculate the Recognized Gain Using Property Transaction Rules Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem or work areas as indicated.

PROBLEM

Elijah owns an apartment building that he purchased ten years ago and currently has an outstanding mortgage. Elijah sells the building for cash plus assumption of his mortgage. He pays commissions, title transfer fees, and an attorney at closing. The following information is provided for the apartment building.

What is Elijah$$s recognized gain?

Selling expenses

Original purchase price $$345,000$

Outstanding mortgage $250,000$ Amount realized

Current adjusted basis $220,000$

Cash portion of sales price of building $300,000$ Realized Gain

Commissions paid on the sale $30,000$

Title transfer fees paid on the sale $500$

Attorney fees paid for closing on the sale $1,000$