Ratliff Development Corporation purchases a tract of land in 2016 at a cost of $120,000 and subdivides
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Ratliff Development Corporation purchases a tract of land in 2016 at a cost of $120,000 and subdivides the land into 30 building lots. The cost of subdividing is $6,000. In 2016, Ratliff installs roads and utilities at a cost of $36,000 and pays property taxes totaling $2,000 in 2016 and 2017. Interest paid on the loan used to purchase the land is $10,000 in 2016 and $6,000 in 2017. In 2017, Ratliff sells 10 lots for a total of $350,000. What is the corporation's gain or loss on the sale of the lots?
CorporationA 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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Concepts In Federal Taxation 2018
ISBN: 9781337386074
25th Edition
Authors: Kevin E. Murphy, Mark Higgins
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