Bob and Elizabeth,both 55 Years Old and Married,sell Their Personal

question 103

Multiple Choice

Bob and Elizabeth,both 55 years old and married,sell their personal residence to Wolfgang.Wolfgang pays $660,000 and assumes their $90,000 mortgage.To make the sale they pay $20,000 in commissions and $10,000 in legal costs.They have owned and lived in the house for seven years and their tax basis is $200,000.What is the amount of gain recognized on the sale?

• A)$0
• B)$20,000
• C)$50,000
• D)$520,000

---

Definitions:

Direct Quotation

A report of the exact words used by someone, often enclosed in quotation marks, or a method of foreign exchange quoting with the domestic currency as the base.

Quotation Marks

Punctuation marks used in pairs to indicate when someone is speaking or to denote a quotation or direct speech.

Constitutional Right

A right granted and protected by a country's constitution, often including the rights to free speech, equality, and privacy.

Free Speech

The right to express any opinions without censorship or restraint.