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Brian Brewster sold the property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $120,000. The property had cost $300,000
Brian Brewster sold the property to a buyer who paid him $400,000 cash and assumed an existing mortgage of $120,000. The property had cost $300,000 and he had made improvements of $50,000. Depreciation of $100,000 has been claimed and selling expenses were $20,000.
What is the amount of gain?
a. $100,000.
b. $200,000.
c. $250,000.
d. $280,000.
e. $330,000.
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