Carlos bought a building for $113,000 in 2015. He added an addition to the building for $26,000 in 2016. In 2019, he sold it for $212,000. What was his long-term capital gain (ignore depreciation)?
A)$0
B)$47,000
C)$73,000
D)$99,000
E)$212,000

Question

Quizplus · Accepted Answer

Carlos's total investment in the building is the initial purchase price plus the cost of the addition, which is $113,000 + $26,000 = $139,000. The selling price is $212,000. Therefore, the long-term capital gain is the selling price minus the total investment, which is $212,000 - $139,000 = $73,000.

Carlos Bought a Building for $113,000 in 2015