Homework Answers
Answer:
a. The property is sold on credit Whether the property is sold on cash or on credit is not relevantfor this purpose. The amount realized includes both the cash received at the time of sale and thecash to be received in future i.e. the payments made by the debtor.
b. A mortgage on the property is assumed by the buyerThe mortgage assumption increases theamount realized by the seller.
c. A mortgage on the property is assumed by the sellerThe assumption by the seller of thebuyer’s mortgage decreases the amount realized by the seller.
d. The buyer acquires the property subject to a mortgage of the sellerThe buyer’s acquisitionof the property subject to the mortgage of the seller increases the amount realized by the seller.
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 isreceived by the seller as part of the consideration.The receipt of the stock worth $10,000 by theseller increases the amount realized by $10,000.
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a. 9. LO.1 If a taxpayer sells property for cash, the amount realized consists of the...
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