Xavier sells land to Zach in exchange for:

$$15,000$ cash

a piece of equipment with an adjusted basis of $$15,000$ and a fair market value of

$$20,000$

The land was subject to a $$25,000$ mortgage which Zach assumed.

Xavier incurred $$2,500$ in selling expenses.

What is the amount realized by Xavier?

Select one:

a$.$ $$52,500$

b$.$ $$60,000$

c$.$ $$55,000$

d$.$ $$57,500$