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David Pays $35,000 Cash and Issues a Mortgage Note for $95,000

Question 51

Multiple Choice

David pays $35,000 cash and issues a mortgage note for $95,000 to purchase land. He pays $750 to his attorney for reviewing the purchase agreement. David's initial basis in the land is


A) $- 0 -
B) $35,000
C) $35,750
D) $130,000
E) $130,750

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