Bob and Elizabeth Brown, a Married Couple, Sell Their Personal

question 886

Multiple Choice

Bob and Elizabeth Brown, a married couple, sell their personal residence to Tamel. Tamel pays $660,000 and assumes their $90,000 mortgage. To make the sale, the Browns pay $20,000 in commissions and $10,000 in legal costs. The couple has owned and lived in the house for seven years and their tax basis is $200,000. What is the amount of gain recognized on the sale?

• A) $0
• B) $20,000
• C) $520,000
• D) $50,000

---

Definitions:

Tubules

Small tubes within structures of the body, such as the kidneys or plants, through which fluids or other substances move.

Renal Corpuscles

Specialized structures in the kidneys that play a critical role in filtering blood and forming urine.

Glomerular Filtration

The process by which the kidneys filter blood, removing excess fluids and waste products to form urine.

Tubular Secretion

The third process of urine formation in which substances move out of the blood in the peritubular capillaries into renal tubules.