Shawn, a Single Taxpayer, Sold the House He Lived in for Seven

question 33

Multiple Choice

Shawn, a single taxpayer, sold the house he lived in for seven years for $700,000.He purchased the house for $285,000.He made improvements at a cost of $125,000 and paid a $30,000 commission on the sale.What are Shawn's realized and recognized gains on the sale?

• A)$260,000 realized and recognized
• B)$290,000 realized and recognized
• C)$260,000 realized and $10,000 recognized
• D)$260,000 realized and no gain recognized