Charlotte purchases a residence for $105,000 on April 13,2005.On July 1,2011,she marries Howard and they use Charlotte's house as their principal residence.On May 12,2013,they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.What is their realized and recognized gain?
$\begin{array}{cc}
\text { Realized } & \text { Recognized } \
a.\$ 265,000 & \$-0-\
b.\$ 265,000 & \$ 15,000 \
c.\$ 285,000 & \$ 65,000 \
d.\$ 265,000 & \$ 45,000 \
e.\$ 285,000 & \$-0-
\end{array}$

Question

Charlotte purchases a residence for $105,000 on April 13,2005.On July 1,2011,she marries Howard and they use Charlotte's house as their principal residence.On May 12,2013,they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.What is their realized and recognized gain?
$\begin{array}{cc}
\text { Realized } & \text { Recognized } \
a.\$ 265,000 & \$-0-\
b.\$ 265,000 & \$ 15,000  \
c.\$ 285,000 & \$ 65,000  \
d.\$ 265,000 & \$ 45,000  \
e.\$ 285,000 & \$-0-
\end{array}$

Quizplus · Accepted Answer

The Answer of Charlotte purchases a residence for $105,000 on April 13,2005.On July 1,2011,she marries Howard and they use Charlotte's house as their principal residence.On May 12,2013,they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.What is their realized and recognized gain?
$\begin{array}{cc}
\text { Realized } & \text { Recognized } \
a.\$ 265,000 & \$-0-\
b.\$ 265,000 & \$ 15,000  \
c.\$ 285,000 & \$ 65,000  \
d.\$ 265,000 & \$ 45,000  \
e.\$ 285,000 & \$-0-
\end{array}$

Charlotte Purchases a Residence for $105,000 on April 13,2005