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find out the gain or loss form below transaction. 1, D sold for $300,000 an apartment...

find out the gain or loss form below transaction.

1, D sold for $300,000 an apartment building he had owned for 15 years. Total depreciation on the building was $363,189. The adjusted basis was $125,000.

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Calculation of Gain/Loss form the sale of an Apartment building

Amount realized:
Cash $300,000
Deduct;
Adjusted basis $125,000
Gain on sale $175,000

Explanation: A gain is the amount you realize from a sale or exchange of property that is more than its adjusted basis. A loss occurs when the adjusted basis of the property is more than the amount you realize on the sale or exchange. Here, the amount realized is more than the adjusted basis, so “gain on sale” is $175,000.

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