Montana max sells a 2500-acre ranch for 1000000 in cash a, Ask an Expert

Accounting

Montana Max sells a 2,500-acre ranch for $1,000,000 in cash, a note receivable of $1,000,000, and debt relief of $2,400,000. He also pays selling commissions of $60,000. In addition, Max agrees to build a new barn on the property (cost $250,000) and spend $100,000 upgrading the fence on the property before the sale. What is Max's amount realized on the sale?

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Taxation, Accounting

Category:- Taxation
Reference No.:- M91580383

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