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.

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