What is realized gain recognized gain and amount realized

Reference no: EM131977140

Problem

Somebody sold business property A for a total of $40,000 ($27,000 in cash and the buyer assumed the mortage of $13,000). Somebody incurred $2,100 in sales commission. Originally, Somebody purchased the property A for $18,000 and build another floor for $3,000 in the year of acquisition. Somebody did not take any depreciation, but was legally suppose to take $2,000. What is the realized gain , recognized gain, and amount realized?

Reference no: EM131977140

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