Nana Is a Self-Employed Consultant

question 86

Multiple Choice

Nana is a self-employed consultant.For the past five years,she has used an extra bedroom (15% of the house) in her home as a qualifying home office and deducted $9,000 of depreciation expense.This year she sells the house for $740,000.The house cost $500,000.Nana is single.She will recognize gain on the sale of the house of

• A)$0.
• B)$9,000.
• C)$45,000.
• D)$249,000.

---

Definitions:

Bond Yield

The return an investor realizes on a bond, calculated by dividing the annual interest payments by the bond's current market price.

Borrowing

The act of obtaining funds from another party with the agreement to repay, typically with interest.

Sell Bonds

The act of disposing of bonds in exchange for cash before they mature.

Company

An organization or entity engaged in commercial, industrial, or professional activities, either for-profit or nonprofit.