Mr Beck Sold Real Property with a $140,000 Adjusted Basis

question 13

Multiple Choice

Mr. Beck sold real property with a $140,000 adjusted basis for $255,000. The buyer paid $148,000 cash and assumed Mr. Beck's $107,000 mortgage on the realty. Mr. Beck's realized gain or loss on sale is:

• A) $115,000 gain
• B) $8,000 gain
• C) $33,000 loss
• D) $0 gain or loss

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Definitions:

Normative Influence

The impact of the social norms and expectations of others on an individual's behavior, often leading to conformity.

Deindividuation

A psychological state where individuals lose self-awareness and a sense of individuality, often resulting in uninhibited or deviant behavior, usually within a group context.

Lost Anonymity

The situation in which an individual's identity becomes known after previously being unknown or unacknowledged.

Prosocial

Acting in ways that tend to benefit others.