Juan, Not a Dealer in Real Property, Sold Land That

question 53

Multiple Choice

Juan, not a dealer in real property, sold land that he owned.His adjusted basis in the land was $700,000 and it was encumbered by a mortgage for $100,000.The terms of the sale required the buyer to pay Juan $200,000 on the date of the sale.The buyer assumed Juan's mortgage and gave him a note for $900,000 (plus interest at the Federal rate) due in the following year.What is the gross profit percentage (gain ÷ contract price) ?

• A)$700/$1,100 = 63.64%.
• B)$500/$1,200 = 41.67%.
• C)$700/$1,200 = 58.33%.
• D)$500/$1,100 = 45.45%.
• E)None of these.

---

Definitions:

Genetic Factors

Inherited traits from one's biological parents that influence various aspects of an individual's physical and behavioral characteristics.

Mercury

A chemical element with the symbol Hg and atomic number 80, known for being the only metallic element that is liquid at standard conditions for temperature and pressure.

Childhood Vaccinations

Immunizations given during childhood to protect against various infectious diseases, critical for public health and individual well-being.

Etiology of Schizophrenia

The study and investigation of the origins and causes of schizophrenia, including genetic, environmental, and psychological factors.