During 2017, Ted and Judy, a Married Couple, Decided to Sell

question 118

Multiple Choice

During 2017, Ted and Judy, a married couple, decided to sell their residence, which had a basis of $300,000. They had owned and occupied the residence for 20 years. To make it more attractive to prospective buyers, they had the outside painted in April at a cost of $6,000 and paid for the work immediately. They sold the house in May for $880,000. Broker's commissions and other selling expenses amounted to $53,000. Since they both are age 68, they decide to rent an apartment. They purchase an annuity with the net proceeds from the sale. What is the recognized gain?

• A)$0
• B)$17,000
• C)$27,000
• D)$527,000
• E)None of the above

Recognize the specific characteristics and advantages of direct private long-term debt financing.

Understand the capacity limits of different types of memory.

Describe the components and functions of working memory.

Understand the concept of chunking and its importance in memory.

---

Definitions:

Rules Of Exponents

Fundamental principles used to simplify expressions involving powers of the same base, including multiplication, division, and power of power rules.

Expression

A combination of symbols that represents a quantity or a relationship between quantities.

Y

In Cartesian coordinates, the vertical axis or the value that represents vertical position.

Expression

A combination of symbols and operators in mathematics that represents a specific value.