Nat Is a Salesman for a Real Estate Developer

Short Answer

Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot? $\begin{array}{lr}\text { Recognized Gain }&\text { Basis }\\\text { a. } \$ 0 & \$ 75,000 \\\text { b. } \$ 0 & \$ 90,000 \\\text { c. } \$ 15,000 & \$ 75,000 \\\text { d. } \$ 15,000 & \$ 90,000 \\\text { e. } \$ 30,000 & \$ 105,000\end{array}$