Question

[The following information applies to the questions displayed below.) Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios? a. Rafael received $116,000 cash and a vehicle worth $18,900. Rafael also paid $9,450 in selling expenses. Amount realized

Answer 1

a
Receipts
	Cash	$   116,000
	Vehicle	$     18,900
Total Receipts		$   134,900
Less: Selling Expenses		$     (9,450)
Amount Realized		$   125,450
b
Receipts
	Cash	$     84,000
	Mortgage	$     54,000
Total Receipts		$   138,000
Less: Selling Expenses		$     (8,200)
Amount Realized		$   129,800
b
Receipts
	Cash	$     42,000
	Securities	$     13,300
	Land	$     65,000
Total Receipts		$   120,300
Less: Selling Expenses		$     (9,100)
Amount Realized		$   111,200