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:

Asset

An economic resource owned or controlled by an individual or entity that is expected to produce future benefits.

Service Revenue

Income earned by a company for the services it has provided to its customers.

Bank Loan Payable

Bank Loan Payable is the amount owed by a borrower to a bank, typically represented as a liability on the borrower's balance sheet.