Answer:
Gain of $17,000
Explanation:
The basis of Patrice's land is $40,000 and he sells it for $50,000. That is a $10,000 gain because he sold the land for $10,000 more than his basis in the land. But also the buyer assumed Patrice's liability of 7,000, which means that Patrice had to pay someone $7,000 but now the buyer of the land will make this obligation which means that this 7,000 is also part of the gain on sale of land. So the total Gain is 10,000 +7,000= $17,000.
