Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
$\begin{array}{ccc}
& \text { Realized } & \text { Recognized } \
\text { a. } & \$ 365,000 & \$-0- \
\text { b. } & \$ 365,000 & \$ 115,000 \
\text { c. } & \$ 385,000 & \$ 135,000 \
\text { d. } & \$ 385,000 & \$-0- \
\text { e. } & \$ 390,000 & \$-0-
\end{array}$

Question

Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
$\begin{array}{ccc} 
& \text { Realized } & \text { Recognized } \
\text { a. } & \$ 365,000 & \$-0- \
\text { b. } & \$ 365,000 & \$ 115,000 \
\text { c. } & \$ 385,000 & \$ 135,000 \
\text { d. } & \$ 385,000 & \$-0- \
\text { e. } & \$ 390,000 & \$-0-
\end{array}$

Quizplus · Accepted Answer

The Answer of Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
$\begin{array}{ccc} 
& \text { Realized } & \text { Recognized } \
\text { a. } & \$ 365,000 & \$-0- \
\text { b. } & \$ 365,000 & \$ 115,000 \
\text { c. } & \$ 385,000 & \$ 135,000 \
\text { d. } & \$ 385,000 & \$-0- \
\text { e. } & \$ 390,000 & \$-0-
\end{array}$

Tony and Faith Sell Their Home for $495,000,incurring Selling Expenses