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In order to acquire Property #1, Holly transfers $50,000 of cash to George.  In addition, Holly takes...

  1. In order to acquire Property #1, Holly transfers $50,000 of cash to George.  In addition, Holly takes Property #1 subject to an existing $63,000 mortgage, gives George her own promissory note in the amount of $75,000 and a Corvette with a FMV of $47,000 and an adjusted basis in Holly’s hands of $40,000.
  1. What is George’s amount realized on the sale of Property #1 to Holly?  
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Answer #1
Particulars Amount
Cash received                50,000
Mortgage relief                63,000
Promissory note received                75,000
FMV of corvette                47,000
Amount realized              235,000

Amount realized is 235,000

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