Assuming the selling price remains constant, the gain realized on the sale of a property decreases if the adjusted basis of the property sold increases.

Name: Assuming the selling price remains constant, the gain realized on the sale of a property decreases if the adjusted basis of the property sold increases.
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Question

Quizplus · Accepted Answer

This statement is true. The adjusted basis is subtracted from the selling price to determine the gain, so if the adjusted basis increases, the gain decreases.

Assuming the Selling Price Remains Constant, the Gain Realized on the Sale