This Year,John Purchased Property from William by Assuming an Existing

question 67

Multiple Choice

This year,John purchased property from William by assuming an existing mortgage of $40,000 and agreed to pay an additional $60,000,plus interest,in the 3 years following the year of sale (i.e.$20,000 annual payments for three years,plus interest) .William had an adjusted basis of $44,000 in the building.What are the sales price and the contract price in this transaction?

---

Definitions:

Dehumanization

The process of depriving a person or group of positive human qualities, making them seem less than human.

Distinctive Physical Features

Unique physical attributes or characteristics that distinguish an individual or thing from others.

Doctrine of Superiority

A belief system that holds one group to be inherently superior to others on the basis of race, ethnicity, religion, or cultural background, often used to justify inequality.

Genetic Analysis

The study or examination of an organism's genes or chromosomes in order to identify hereditary diseases, conditions, or traits.