Pierce Sold His Home This Year Based on These Facts,what Is the Amount of His Recognized

question 9

Multiple Choice

Pierce sold his home this year.He had owned and lived in the house for 10 years.Pierce signed a contract on March 4 to sell his home. $$\begin{array} { | r | r | } \hline \text { Sales price } & \$ 600,000 \\\hline \text { Selling expenses } & 15,000 \\\hline \text { Replaced and paid for a broken window on March 2 } & 800 \\\hline \text { Basis of old home before repairs and improvements } & 310,000 \\\hline\end{array}$$ Based on these facts,what is the amount of his recognized gain?

• A)$0
• B)$25,000
• C)$40,000
• D)$275,000