A Taxpayer Purchased Land in 2007 for $85,000 and Sold

question 118

Multiple Choice

A taxpayer purchased land in 2007 for $85,000 and sold it in 2014 for $75,000 cash.The buyer also assumed the mortgage of $5,000.What is the amount of gain/loss on the sale of the land?

• A) $5,000 loss.
• B) $5,000 gain.
• C) $15,000 gain.
• D) $20,000 loss.

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Definitions:

Colonialism

The strategy or method of gaining complete or partial political power over a different nation, settling it with inhabitants, and utilizing it for economic gain.

Nineteenth Century

The period ranging from January 1, 1801, to December 31, 1900, marked by significant social, economic, and technological changes worldwide.

Internal Colonialism

The economic and political subjugation of the minority group within a country by the dominant group, leading to social inequalities.

Segregated School System

An education system where schools are divided based on racial, ethnic, or economic lines, leading to unequal opportunities and resources.