Will's Whitewater Rafting sold 3 acres of land used in the business. The sales price was $6,000 and the adjusted basis of the land was $4,200. Will receives a down payment of $4,000 at the time of sale and will receive the remaining $2,000 early next year. The realized gain on the sale is $

The realized gain on the sale is $1,800

Explanation

Adjusted basis is defined in tax accouting as the residual cost after deducting various related tax items.

Since

Selling Price = $6,000

Adjusted basis = $4,200

Therefore, the gain realized on the sale is

Sales - Adjusted basis

= $6,000 - $4,200

= $1,800

answer; 20% is your answer;

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