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:

Cultural Identity

A person's or group's sense of belonging or identity within a particular culture, influenced by traditions, language, religion, and social practices.

North America

A continent located entirely in the Northern Hemisphere and almost entirely in the Western Hemisphere, consisting of countries such as Canada, the United States, and Mexico.

Southern Indians

Native American tribes that historically inhabited the southern regions of North America, each with distinct cultures, languages, and traditions.

Acculturation

The process of cultural change and psychological change that results following meeting between cultures, including adopting the values and practices of another culture.