Heidi (Single)purchased a Home on January 1,2007 for $400,000

question 85

Essay

Heidi (single)purchased a home on January 1,2007 for $400,000.She lived in the home as her primary residence until January 1,2015 when she began using the home as a vacation home.She used the home as a vacation home until January 1,2016 (she used a different home as her primary residence from January 1,2015 to January 1,2016).On January 1,2016,Heidi moved back into the home and used it as her primary residence until January 1,2017 when she sold the home for $700,000.What amount of the $300,000 gain Heidi realized on the sale must she recognize for tax purposes in 2017?

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Definitions:

Observed Frequencies

The actual number of occurrences of events measured or recorded during a study or experiment.

Normal Distribution

A symmetric bell-shaped frequency distribution that is fully defined by its mean and standard deviation.

Intervals

Ranges between two points or values, often used in statistics to indicate the confidence or probability associated with a specific estimate.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.