Sue,a Single Taxpayer,purchased a Principal Residence in 2001 for $415,000

question 22

Multiple Choice

Sue,a single taxpayer,purchased a principal residence in 2001 for $415,000.In 2005,she paid $18,000 to add a sunroom.This year,Sue sold the residence for $686,000.Her selling expenses were $5,000.How much gain must Sue recognize on the sale?

• A)$0
• B)$3,000
• C)$16,000
• D)$25,000

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Definitions:

Eye-Movement Desensitization Reprocessing (EMDR)

A psychotherapy treatment designed to alleviate the distress associated with traumatic memories, involving attention to external stimuli while recalling traumatic events.

Controversial Therapy

Controversial therapy encompasses treatment methods in psychology and psychiatry that are disputed by some professionals regarding their efficacy or ethics.

Disturbing Memory

A recall of an event or information that causes emotional discomfort, stress, or trauma, often persistently affecting an individual's well-being.

Negative Reinforcement

A behavioral principle where the removal of a negative stimulus strengthens a desired behavior.