What is the amount realized on the sale by bruce

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Bruce sold his vacation condominium on Maui to Nora for $240,000. At the closing on July 1, Nora paid Bruce $40,000 in cash and gave him a promissory note, secured by a mortgage, for $200,000. The note provided for no interest. The note was payable in installments of $20,000, due on July 1 of each of the next 10 years. Bruce's basis in his condominium was $80,000. The applicable federal rate on the closing date was 5%.

What is the amount realized on the sale by Bruce? How much interest income does Bruce recognize? When?

What is Nora's basis in the property? How much interest has she paid? When did she pay it?

Reference no: EM133513489

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