Alice Owns Land with an Adjusted Basis of $610,000,subject to a Mortgage

question 26

Multiple Choice

Alice owns land with an adjusted basis of $610,000,subject to a mortgage of $350,000.Real estate taxes are $9,000 per calendar year and are payable on December 31.On April 1,Alice sells her land subject to the mortgage for $650,000 in cash,a note for $600,000,and property with a fair market value of $120,000.What is the amount realized?

• A)$1,370,000
• B)$1,372,250
• C)$1,720,000
• D)$1,722,250
• E)None of the above

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Definitions:

Stressful Day

A day filled with high levels of stress, often due to challenging or overwhelming situations.

Bipolar Disorder

A mental disorder that causes unusual shifts in mood, energy, activity levels, and the ability to carry out day-to-day tasks.

Depression

A psychiatric condition marked by a persistent feeling of sadness, lack of interest, and can lead to a variety of emotional and physical problems.

Mania

A mental state characterized by excessive excitement, energy, and euphoria, often seen in bipolar disorder.