Louis Sold His Farm During The Current Taxable Year At The Date Of The Sale The

Louis sold his farm during the current taxable year. At the date of the sale, the farm had an adjusted basis of $212,000 and was encumbered by a mortgage of $190,000. The buyer paid him $10,000 in cash, agreed to take the title subject to the $190,000 mortgage, and agreed to pay him $80,000 with interest at 9% one year from the date of sale. How much is Louis’ recognized gain on the sale?

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