If Peter in the preceding problem had received proceeds of $550,000. How much gain would be recognized?
A) $-0-
B) $120,000
C) $180,000
D) $375,000
E) None of the above

Name: If Peter in the preceding problem had received proceeds of $550,000. How much gain would be recognized? A) $-0- B) $120,000 C) $180,000 D) $375,000 E) None of the above
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Question

Quizplus · Accepted Answer

Peter has a realized gain of $370,000 ($550,000 less $180,000). He may exclude $250,000 and would have to recognize $120,000 gain.

If Peter in the Preceding Problem Had Received Proceeds of $550,000