Malik sold his ranch, which was his principal residence, during the current taxable year. At...
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Accounting
Malik sold his ranch, which was his principal residence, during the current taxable year.
At the date of the sale, the ranch had an adjusted basis of $460,000 and was encumbered by a mortgage of $200,000.
The buyer paid him $500,000 in cash, agreed to take the title subject to the $200,000 mortgage, and agreed to pay him $100,000 with interest at 3.5 percent one year from the date of sale.
How much is Maliks realized gain on the sale?
6
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