Josh Purchases a Personal Residence for $278,000 but Subsequently Converts

question 49

Multiple Choice

Josh purchases a personal residence for $278,000 but subsequently converts the property to rental property when its FMV is $275,000.Assume depreciation of $65,000 has been deducted after conversion to rental use.If Josh sells the property for $280,000,his gain or loss will be

• A)$2,000 gain.
• B)$5,000 gain.
• C)$67,000 gain.
• D)$70,000 gain.

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Definitions:

Economic and Monetary Union

A type of trade bloc that combines a common market with a currency union. Often entails the coordination of economic and fiscal policies among member states.

Internal Borders

Boundaries within a country that delineate regions, states, or territories for administrative purposes.

Wholly Owned Subsidiaries

Companies that are completely controlled by another company, the parent company, because the parent company owns all of their stock.

MNE

A Multinational Enterprise (MNE) is a company that owns and controls production or service facilities outside of the country in which it is based.