Problem:
Ashley sells real property for $280,000. The buyer pays $4,000 in property taxes that had accrued during the year while the property was still legally owned by Ashley. In addition, Ashley pays $14,000 in commissions and $3,000 in legal fees in connection with the sale.
Required:
Question: How much does Ashley realize (the amount realized) from the sale of her property?
- $259,000.
- $263,000.
- $267,000.
- $280,000.
- None of the above.
Note: Please show the work not just the answer.