Suppose the taxpayer originally purchased the machinery by paying $12,000 in cash and giving the seller...

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Suppose the taxpayer originally purchased the machinery by paying $12,000 in cash and giving the seller a note for $12,000. When she sold it she received $38,000 in cash and the buyer assumed the $12,000 note. a) What is the amount realized? b) What is the adjusted basis of the machinery? c) What is the gain on the sale of the machinery? Suppose the taxpayer originally purchased the machinery by paying $12,000 in cash and giving the seller a note for $12,000. When she sold it she received $38,000 in cash and the buyer assumed the $12,000 note. a) What is the amount realized? b) What is the adjusted basis of the machinery? c) What is the gain on the sale of the machinery?

Answer rating: 100% (QA)

a The amount realized in this case includes the cash received from the sale 38000 and the a... View the full answer