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Question 1. Question :
(TCO 6) Alice owns land with an adjusted basis of $305,000, subject to a mortgage of $175,000. Real estate taxes are $4,500 per calendar year and are payable on December 31. On April 1, 20X2, Alice sells her land subject to the mortgage for $325,000 in cash, a note for $300,000, and property with a fair market value of $60,000. What is the amount realized?
$685,000
$686,110
$860,000
$861,110
None of the above
Question 2. Question :
(TCO 6) Frank’s automobile (adjusted basis of $8,000) was used exclusively for business