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

question 9

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 1,2015,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)$1,372,219
• C)$1,720,000
• D)$1,722,219
• E)None of the above