James and Ellen Connors,who Are Both 50 Years Old and Married,sell

question 90

Essay

James and Ellen Connors,who are both 50 years old and married,sell their personal residence on July 25,2015 for $950,000.They have lived in the home for 20 years.The basis of the home is $350,000.They purchased a new home for $1,000,000 in August 2015.After living in that home for 219 days,the Connors were forced to sell their new home in 2016 for $1,300,000 and move to another climate due to Ellen's severe health problems.
a.What is the amount of gain recognized on the home sale in 2015?
b.What is the amount of the gain recognized on the home sale in 2016?

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Definitions:

Mental Impairment

A reduction in cognitive, emotional, or behavioral functioning, which may affect daily living and can be temporary or permanent.

Nondisjunction

Failure of the homologous chromosomes or sister chromatids to separate during either mitosis or meiosis; produces cells with abnormal chromosome numbers.

Homologous Chromosomes

Pair of chromosomes that have the same gene sequences, each derived from one parent.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of gametes or spores in sexually reproducing organisms.