Does aliza realize a gain on the sale of residence

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Problem 1: Assume instea that Aliza purchases a house for $500,000. She pays $200,000 in cash and signs a mortgage for $300,000. After living in the house as her principle residence for 2 years, she sells the house for $900,000 in cash add the buyer assumes her mortgage of$200,000. Does Aliza realize a gain on the sale of her residence, and if so, what is the amount?

Reference no: EM132648461

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