Statement 1: The excess of mortgage assumed by the buyer over the basis of the properties sold is the amount of the gain of the sale Statement 2: Any collection from an installment contract where the mortgage exceeds the tax basis of the properties received constitutes collection of income

Statement 1: The excess of mortgage assumed by the buyer over the basis of the properties sold is the amount of the gain of the sale Statement 2: Any collection from an installment contract where the mortgage exceeds the tax basis of the properties received constitutes collection of income

Statement 1: The excess of mortgage assumed by the buyer over the basis of the properties sold is the amount of the gain of the sale
Statement 2: Any collection from an installment contract where the mortgage exceeds the tax basis of the properties received constitutes collection of income


Which statement is true?


A. Statement 1 only
B. Statement 2 only
C. Both statements are true
D. Neither statement is true


Answer: B. Statement 2 only


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