Pedro sells Investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...

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Question

Pedro sells Investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis Selling price Se

Answer 1

Answer #1

Answer
Gain realized = selling price - selling expense - basis = 93,600 - 1,250 - 26,000 = 66350

Gain recognized is a percentage of amount of realized:

Year	Amount realized	% realized	Gain recognized
2018	31200	0.333333333	22117
2019	15600	0.166666667	11058
2020	15600	0.166666667	11058
2021	15600	0.166666667	11058
2022	15600	0.166666667	11058

Total	93600		66350

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Answer 2

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