This Year,John Purchased Property from William by Assuming an Existing $$\begin{array} { | l | l | } \hline \text { Sales Price } & \text { Contract Price } \\\hline \$ 40,000 & \$ 60,000 \\\hline\end{array}$$

Multiple Choice

This year,John purchased property from William by assuming an existing mortgage of $40,000 and agreed to pay an additional $60,000,plus interest,in the 3 years following the year of sale (i.e.,$20,000 annual payments for three years,plus interest) .William had an adjusted basis of $44,000 in the building.What are the sales price and the contract price in this transaction?

A) $$\begin{array} { | l | l | } \hline \text { Sales Price } & \text { Contract Price } \\\hline \$ 40,000 & \$ 60,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l | } \hline \text { Sales Price } & \text { Contract Price } \\\hline \$ 100,000 & \$ 40,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l | } \hline \text { Sales Price } & \text { Contract Price } \\\hline \$ 100,000 & \$ 60,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l | } \hline \text { Sales Price } & \text { Contract Price } \\\hline \$ 100,000 & \$ 100,000 \\\hline\end{array}$$