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:

Sternberg's Triangular Theory

A model proposing that love consists of three components: intimacy, passion, and commitment, which form different types of love when combined.

Companionate Love

A form of love characterized by deep affection, friendship, and commitment rather than passion.

Newlyweds

Refers to a couple that has recently married.

Arranged Marriages

are marital unions in which the partners are chosen by family members, often based on considerations like cultural, social, and economic compatibility.