During 2017, Howard and Mabel, a Married Couple, Decided to Sell

question 127

Multiple Choice

During 2017, Howard and Mabel, a married couple, decided to sell their residence. The residence has a basis of $162,000 and has been owned and occupied by them for 11 years. The house was sold in May for $395,000 with broker's commissions and other selling expenses being $24,000. They purchased a new residence in June for $400,000. What is the adjusted basis of the new residence?

• A)$0
• B)$141,000
• C)$162,000
• D)$191,000
• E)None of the above

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Definitions:

Provincial Regulation

A set of legal guidelines and rules enforced by a provincial or state government.

Visible Nuisance

A public nuisance that is offensive or annoying to the senses and obstructs the use of property.

Standard of Care

The degree of care and caution expected from a person or professional under specific circumstances.