Kevin Sold Property with an Adjusted Basis of $58,000

question 23

Multiple Choice

Kevin sold property with an adjusted basis of $58,000.The buyer assumed Kevin's existing mortgage of $40,000 and agreed to pay an additional $60,000 consisting of a cash down payment of $40,000,and payments of $4,000,plus interest,per year for the next 5 years.Kevin paid selling expenses totaling $2,000.What is Kevin's gross profit percentage?

• A)33 1/3%
• B)40%
• C)60%
• D)66 2/3%

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Definitions:

Long-Term Memory

The phase or type of memory responsible for the storage of information over extended periods of time.

Sensory Memory

The briefest memory phase that enables people to maintain sensory information impressions even after the initial stimuli are no longer present.

Working Memory

The part of short-term memory that is concerned with immediate, conscious perceptual and linguistic processing.

Implicit Memory

Refers to the type of memory that enables individuals to perform tasks without conscious awareness of these previous experiences.