Mitchell and Debbie,both 55 Years Old and Married,sell Their Personal

question 81

Multiple Choice

Mitchell and Debbie,both 55 years old and married,sell their personal residence to Sophie.Sophie pays $225,000 and assumes their $70,000 mortgage.To make the sale they pay $4,000 in commissions and $1,000 in legal costs.They have owned and lived in the house for seven years and their tax basis is $125,000.What is the amount of gain recognized on the sale?

• A)$0
• B)$100,000
• C)$165,000
• D)$170,000

Understand the function and accuracy of informal communication networks, like the grapevine, within organizations.

Develop an awareness of cultural differences in communication practices and their managerial implications.

Appreciate the importance of communication strategy selection in achieving effective communication within organizations.

Understand the principle of fossil correlation and its significance in geology.

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Definitions:

Classified Revenue

Classified revenue involves organizing a company's revenue into distinct categories for detailed financial analysis and reporting.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity.

Purchasing Supplies

The process of acquiring the goods and materials a company needs to operate.

Increases Liabilities

Refers to events or transactions that result in a rise in the amounts owed by a company, such as taking on new loans or issuing bonds.