Justin, Who Is Single, Sells His Principal Residence That He

question 23

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

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Definitions:

Stem Cells

Undifferentiated cells that have the potential to develop into different cell types, used in medical research and treatment.

Differentiate

To recognize or ascertain what makes someone or something distinct or different compared to others.

Cellular Signaling

The complex system of communication that governs basic cellular activities and coordinates cell actions, crucial for the body's functioning and response to the environment.

Differentiation

Involves the process of becoming distinct or specialized in structure or function, often used in the context of cells in biology or elements within a system.