Juan,not a Dealer in Real Property,sold Land That He Owned

question 31

Multiple Choice

Juan,not a dealer in real property,sold land that he owned.His adjusted basis in the land was $700,000 and it was encumbered by a mortgage for $100,000.The terms of the sale required the buyer to pay Juan $200,000 on the date of the sale.The buyer assumed Juan's mortgage and gave Juan a note for $900,000 (plus interest at the Federal rate) due in the following year.What is the gross profit percentage (gain ÷ contract price) ?

• A)$700/$1,100 = 63.64%.
• B)$500/$1,200 = 41.67%.
• C)$700/$1,200 = 58.33%.
• D)$500/$1,100 = 45.45%.
• E)None of these.

---

Definitions:

NAACP

The National Association for the Advancement of Colored People (NAACP), is an organization that aims to secure the political, educational, social, and economic equality of rights in order to eliminate race-based discrimination and ensure the health and well-being of all persons.

White Prejudice

Preconceived opinion or bias, often rooted in racism, held by individuals or groups against non-whites without proper knowledge, thought, or reason.

African-American Communities

Refers to social groups within the United States consisting primarily of individuals of African descent, with distinct cultural and historical identities.

The Philadelphia Negro

A foundational sociological study by W.E.B. Du Bois, detailing the African American community's social conditions in Philadelphia at the end of the 19th century.