Alice Owns Land with an Adjusted Basis of $610,000 Subject

question 17

Multiple Choice

Alice owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000.On April 1, Alice sells her land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000.What is the amount realized?

• A)$1,250,000
• B)$1,370,000
• C)$1,720,000
• D)$1,820,000