Question

Bart sold a parcel of land for $21,000. He paid a real estate agent a commission of $1,500 for assisting with the sale. Bart had purchased the land several years earlier for $20,000. What is the amount realized on the sale of the land?

a. $19,500
b. $21,000
c. $1,000
d. ($500)

Answer 1

The amount realized on the sale of Bart's land is $19,500, which is the sale price of $21,000 minus the real estate agent's commission of $1,500. (option a)

Step-by-step explanation:

The amount realized on the sale of the land is the total amount that Bart received from the sale after accounting for any costs or expenses necessary to make the sale, such as the commission paid to the real estate agent.

To calculate the amount realized, we subtract the commission Bart paid to the agent from the total sale price of the land:

$21,000 (sale price) - $1,500 (commission) = $19,500

Therefore, the amount realized on the sale of the land is $19,500, which corresponds to option a.