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:

Contractions

The process of muscles tightening or shortening, which results in movement or force being applied.

Sustained Muscle Contraction

A continuous muscle contraction without relaxation, often due to persistent stimulation.

Tetanus

A bacterial infection characterized by muscle spasms, caused by the bacterium Clostridium tetani.

Threshold Stimulus

The minimum stimulus needed to cause a depolarization of the membrane and generate an action potential in excitable cells.