Winslow Owns a Residential Rental Property with an Adjusted Basis

question 52

Multiple Choice

Winslow owns a residential rental property with an adjusted basis of $200,000 at the beginning of the current year. The county treasurer sends Winslow a tax bill payable by December 31. The bill is for real estate property taxes of $1,200 for the current calendar year and for a $6,000 special assessment for a new sewer line. On November 1, Winslow sells the property to Edwin for $225,000. As part of the sale contract, Winslow will pay the special assessment at closing and Edwin agrees to pay the realty taxes on the due date. What is Winslow's gain on the sale?

• A)$19,000
• B)$20,000
• C)$21,000
• D)$25,000
• E)$26,000

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Definitions:

Antigens

Substances that induce an immune response in the body, especially the production of antibodies.

Radioimmunoassay

A sensitive technique used in biochemistry to measure concentrations of antigens by the use of antibodies.

False Positive

A test result which wrongly indicates the presence of a condition or characteristic.

Ergot Fungus

A type of fungus that grows on rye and other grains, producing toxins that can cause serious health problems if ingested.