Nick Sells Land with a $7,000 Adjusted Basis for $10,000

question 60

Essay

Nick sells land with a $7,000 adjusted basis for $10,000.Nick receives a $2,000 down payment with the balance of $8,000 due the following year.Nick is unable to collect the remaining $8,000 and,after incurring legal fees of $500,he repossesses the land when it has a fair market value of $9,000.
a.What is the amount of gain that Nick must report in the first year?
b.What is the amount of gain that Nick must report in the second year?
c.What is the basis in the repossessed stock?

Recognize the impact of societal and personal choices on trends related to marriage, such as cohabitation, childlessness, and the age at first marriage.

Grasp the key psychosocial crises during adulthood as proposed by Erikson, including intimacy versus isolation and generativity versus self-absorption.

Identify factors contributing to marital satisfaction and the transition to parenthood.

Understand the significance of personality development and changes throughout adulthood.

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Definitions:

Digital Multimeter (DMM)

A multiple mode electrical measurement instrument capable of measuring AC voltage, frequency, DC, ohms, amperage, and other values. The term DMM tends to be used in truck technology; the same instrument is more commonly referred to as a digital volt ohmmeter (DVOM) in the auto area.

Circuit

A closed path through which electrical current flows or can flow.

Cathode

The electrode in a battery or electrochemical cell towards which positive ions move, typically where reduction reactions take place.

Diode

An electronic component that allows current to flow in one direction only, functioning as a one-way valve in electrical circuits.