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

question 101

Multiple Choice

Alice owns land with an adjusted basis of $305,000, subject to a mortgage of $175,000.On April 1, 2019, 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.

---

Definitions:

Absolutism Ethics

Absolutism in ethics refers to the belief in fixed, universal principles of right and wrong that apply to all situations, without exception, guiding moral behavior and decision-making.

Honesty

The quality of being truthful and transparent in one's actions and statements.

Fair Use Rule

A legal doctrine that permits limited use of copyrighted material without requiring permission from the rights holder, typically for purposes such as critique, news reporting, or scholarly research.

Copyrighted Works

These are creations such as books, music, software, and art that are legally protected, preventing unauthorized replication or use.