Charlotte Purchases a Residence for $105,000 on April 13,2005

question 18

Short Answer

Charlotte purchases a residence for $105,000 on April 13,2005.On July 1,2011,she marries Howard and they use Charlotte's house as their principal residence.On May 12,2013,they sell their home for $390,000,incurring $20,000 of selling expenses and purchase another residence costing $350,000.What is their realized and recognized gain?
$\begin{array}{clc} & \text { Realized } & \text { Recognized } \\\text { a. } & \$ 265,000 & \$-0- \\\text { b. } & \$ 265,000 & \$ 15,000 \\\text { c. } & \$ 285,000 & \$ 65,000 \\\text { d. }& \$ 265,000 & \$ 45,000 \\\text { e. } &\$ 285,000 & \$-0-\end{array}$

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Definitions:

Personological Approach

A psychological framework focusing on the study of an individual's personality as a whole, considering the complex interplay of traits, behaviors, and motivational factors.

Personality

The unique combination of emotional, attitudinal, and behavioral response patterns of an individual.

Big Five Factors

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and responses.