Which of the following is how gain or loss realized is calculated?
A) Cash less cost recovery.
B) Amount realized less adjusted basis.
C) Cost basis less cost recovery.
D) Cash less selling costs.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Gain or loss realized is calculated by taking the amount realized from the sale of the asset (sale price, cash received, or fair market value of property received) and subtracting the adjusted basis (original cost plus any improvements or minus any depreciation taken).

Which of the Following Is How Gain or Loss Realized