Question
In 20X0, Bridget sold land to her son Caleb for $150,000 cash and an installment note for $600,000. Bridget's adjusted basis was $550,000. In 20X2,
In 20X0, Bridget sold land to her son Caleb for $150,000 cash and an installment note for $600,000. Bridget's adjusted basis was $550,000. In 20X2, after paying $10,000 interest but nothing on the principal, Caleb sold the land for $850,000 cash. As a result of the second disposition, what gain must Bridget recognize in 20X2?
| $600,000 |
| $200,000 |
| $160,000 |
| $40,000 |
| None of the above |
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HRD Score Card 2500 Based On HRD Audit
Authors: T V Rao
1st Edition
8178298368, 978-8178298368
