Alice Owns Land with an Adjusted Basis of $305,000, Subject

question 40

Multiple Choice

Alice owns land with an adjusted basis of $305,000, subject to a mortgage of $175,000. On April 1, 2018, Alice sells her land subject to the mortgage for $325,000 in cash, a note for $300,000, and property with a fair market value of $60,000. What is Alice's amount realized on this sale?

• A) $685,000.
• B) $800,000.
• C) $840,000.
• D) $860,000.
• E) None of the above.

---

Definitions:

Behavioural Interviews

A method of interviewing where candidates are asked to describe past behavior as a predictor of future performance.

Actual Behaviours

Observable actions or reactions of individuals as opposed to their stated intentions or beliefs.

Radically Different Persona

A character or identity that is significantly distinct or divergent from one's usual self or from others'.

Quiet And Introvert

Describes a person who prefers calm environments and tends to focus on internal feelings rather than external sources of stimulation.