Kevin Sold Property with an Adjusted Basis of $58,000

question 23

Multiple Choice

Kevin sold property with an adjusted basis of $58,000.The buyer assumed Kevin's existing mortgage of $40,000 and agreed to pay an additional $60,000 consisting of a cash down payment of $40,000,and payments of $4,000,plus interest,per year for the next 5 years.Kevin paid selling expenses totaling $2,000.What is Kevin's gross profit percentage?

• A)33 1/3%
• B)40%
• C)60%
• D)66 2/3%

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Definitions:

Open-Class Societies

Societies characterized by the opportunity for social mobility and the ability for individuals to change their socio-economic status.

Mobility

The ability to move or be moved freely and easily, whether referring to physical movement of individuals or social mobility within hierarchical structures.

Social Class

is a division of a society based on social and economic status, influencing access to resources and opportunities.

Economic Status

A measure of the financial health and wealth of an individual, group, or nation, often evaluated through income, assets, and access to resources.