McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 2

Brad purchased land for $45,000 this year.At year-end Brad sold the land for $51,700 and paid a sales commission of $450.What effect does this transaction have on Brad's gross income? Explain.