A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale?

Name: A home with a cost basis of $40,800 in 2005 is resold today for $90,000. Commissions and closing expenses are $6,300. What is the gain on the sale?
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Question

Quizplus · Accepted Answer

Sales price of $90,000 - expenses of sale $6,300 = adjusted sale price of $83,700;adjusted sales price of $83,700 - basis of $40,800 = gain of $42,900.

A Home with a Cost Basis of $40,800 in 2005