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

Exercise 22

Potomac Corporation wants to sell a warehouse that it has used in its business for 10 years.Potomac is asking $450,000 for the property.The warehouse is subject to a mortgage of $125,000.If Potomac accepts Wyden Inc.'s offer to give Potomac $325,000 in cash and assume full responsibility for the mortgage on the property, what amount does Potomac realize on the sale