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

question 29

Multiple Choice

Shawn,a single taxpayer,sold the house he has 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
• E)None of the above

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Definitions:

President

The elected head of state and government in a republican form of government, responsible for executing the laws and leading the executive branch.

Electoral College

The body of electors established by the United States Constitution, responsible for selecting the President and Vice President.

Electors

Individuals chosen to vote in an electoral college system, such as that used for the United States presidential elections.

Electoral College

A body of electors established by the U.S. Constitution, responsible for selecting the President and Vice President, where each state's voting power is roughly proportional to its population.