Yolanda Buys a House in the Mountains for $450,000 Which

question 285

Multiple Choice

Yolanda buys a house in the mountains for $450,000 which she uses as her personal vacation home. She builds an additional room on the house for $40,000. She sells the property for $560,000 and pays $28,000 in commissions and $4,000 in legal fees in connection with the sale. What is the recognized gain or loss on the sale of the house?

• A) $0
• B) $38,000
• C) $70,000
• D) $110,000
• E) None of the above

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Definitions:

Distinct Stages

refers to the separate and clearly differentiated phases within a process or development.

Timing

The selection of the precise moment for doing something for optimum effect, such as delivering a punchline or making a decision.

Teratogen

is any substance or agent that can cause congenital anomalies or increase the incidence of an anomaly in a population.

Placental Barrier

Refers to the cellular and structural barrier formed by the placenta, which separates the mother's blood from the fetus's blood, allowing exchange of nutrients and waste while protecting the fetus from harmful substances.