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 gain or loss on the sale of the land?

Answer 1

Answer:

$500 loss

Explanation:

To measure the gain or loss, first we have to assess the selling price of land shown below:

= Selling value of land - sales commission charged

= $21,000 - $ 1,500

= $19,500

And, the land purchase value is $20,000

Thus, the loss would be

= Selling price of land - purchasing value of land

= $19,500-$ 20,000

= -$ 500

This negative figure represents the loss of $500.