Justin,who Is Single,sells His Principal Residence That He Has Owned

question 10

Multiple Choice

Justin,who is single,sells his principal residence that he has owned and occupied for the past five years.His adjusted basis for the residence is $90,000.He incurred selling expenses of $10,000.How much gain must Justin recognize if sells the residence for $390,000?

• A)0
• B)$40,000
• C)$50,000
• D)$290,000
• E)$300,000

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Definitions:

Product Life Cycle

The series of stages a product goes through from introduction to growth, maturity, and decline in the market.