This section is from the book "Real Estate Accounts", by Walter Mucklow. Also available from Amazon: Real Estate Accounts.
These profits are evidently the difference between the cost price and the selling price. There are, however, certain questions to be considered in determining just what these two prices are, for the amount actually paid for a piece of property may not represent the cost of that property, and the amount actually received from a purchaser may include, besides the purchase price, interest, taxes, and insurance, and hence may not be the true selling price.
 
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