On September 2 of This Year,Keshawn Sold Land to Rex,his

question 75

Multiple Choice

On September 2 of this year,Keshawn sold land to Rex,his nephew,for $400,000.Keshawn's basis in the land was $100,000.Rex agreed to pay his uncle $40,000 this year,and $60,000 each year for the next six years plus interest.One month later,Rex sold the land to Theo,an unrelated party,for $450,000.Based on this information,Keshawn must report

• A)$0.Rex reports gain of $300,000.
• B)gain of $225,000 this year.
• C)gain of $225,000 this year plus interest in following six years.
• D)gain of $30,000 this year,and gain in each of the following six years of $45,000 plus interest.

---

Definitions:

Fence

A structure serving as an enclosure, barrier, or boundary, typically made out of wire, wood, or other materials.

Tender Of Performance

An offer by one party to perform their obligations under a contract, in accordance to the contract's terms.

Conditional

Depending on or subject to one or more conditions or requirements being met; not absolute.

Unconditionally Offers

The act of making an offer without attaching any conditions or stipulations.