Taxpayer owns land, which he bought for $ 100,000 in 20X1. Taxpayer took a loan from the bank to buy the land for the amount of $ 80,000.

In 20X3, Taxpayer sells the Land to Buyer, who paid Taxpayer $ 60,000 and assumed the loan whose balance at the time of the transaction was $ 70,000.

What is the realized amount and the realized profit or loss?

Select one:

a. Amount realized $ 130,000; realized profit $ 30,000.

b. Amount realized $ 70,000; $ 30,000 realized loss.

c. Amount realized $ 140,000; realized profit $ 40,000.

d. Amount realized $ 60,000; $ 40,000 realized loss.