Hannah,a Single Taxpayer,sold Her Primary Residence on January 1,2019

question 75

Multiple Choice

Hannah,a single taxpayer,sold her primary residence on January 1,2019.Her total realized gain is $210,000.The house was acquired on January 1,2009,and rented to tenants until December 31,2015.Hannah moved in on January 1,2016,and used the house as her principal residence until the sale.During the rental period,$30,000 of depreciation was deducted.Due to the sale of the house in 2019,Hannah will recognize a gain of

• A)$126,000.
• B)$30,000.
• C)$156,000.
• D)$138,000.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenues.

Income and Losses

The total revenues gained minus the expenses and losses incurred by a business over a period, determining net profit or loss.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was acquired, reflecting its loss of value over time.

Equipment

Equipment refers to the tangible assets or tools used in the operation or production process of businesses, which can range from office supplies to heavy machinery.