If Norman in the preceding problem had instead sold the home for $300,000, how much must Norman recognize?
A) $250,000
B) $163,750
C) $156,250
D) $-0-
E) None of the above

Question

Quizplus · Accepted Answer

Norman would still be able to exclude up to $156,250, which is more than the realized gain of $145,000 ($300,000 less $155,000). the refore, he does not need to recognize any gain.

If Norman in the Preceding Problem Had Instead Sold the Home