Kevin sold property with an adjusted basis of $58,000. The buyer assumed Kevin's existing mortgage of $40,000 and agreed to pay an additional $60,000 consisting of a cash down payment of $40,000, and payments of $4,000, plus interest, per year for the next 5 years. Kevin paid selling expenses totaling $2,000. What is Kevin's gross profit percentage?

A) 33 1/3%
B) 40%
C) 60%
D) 66 2/3%


D) 66 2/3%

Gross profit is $40,000 ($40,000 + 60,000 - 58,000 - 2,000). Contract price is $60,000. Profit percentage is 66 2/3% ($40,000 / $60,000).

Business

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