Carlos Bought a Building for $111,000 in 2009

question 89

Multiple Choice

Carlos bought a building for $111,000 in 2009.He built an addition to the building for $24,000.In 2013,he sold it for $190,000.What was his long-term capital gain?

• A)$190,000
• B)$55,000
• C)$79,000
• D)$175,000
• E)$59,000

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Definitions:

Valid Contract

A legally binding agreement between parties to do or not do certain things.

Avoid Liability

Strategies or actions taken to minimize or evade legal responsibility or penalties.

Intoxicated Person

An individual under the influence of alcohol or drugs to the extent that their mental and physical faculties are significantly impaired.

Voidable

A term used to describe a contract that is valid and enforceable, but may be legally declared void at the option of one of the parties due to certain defects.