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Part $1$

During the current$$ year, Tom sells a tract of land for $ $850$ comma $000.$ The property was received as a gift from Janell on March$10,1995,$ when the property had a $ $330$ comma $000$ fair market value$($FMV$).$ The taxable gift was $ $320$ comma $000$ because the annual exclusion was $ $10$ comma $000$ in $1995.$ Janell purchased the property on April$12,1980,$ for $ $106$ comma $000.$ At the time of the$$ gift, Janell paid a gift tax of $ $16$ comma $000.$ In order to sell the$$ property, Tom paid a sales commission of $ $21$ comma $000.$

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Part $1$

Requirement a$.$ What is Tom$\text{'}$s realized gain on the$$ sale?

Select the$$ formula, then calculate Tom$\text{'}$s realized gain on the sale. $($Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest$$ dollar.$)$

Amount realized

Minus

Basis

realized gain