Katrina, Age 58, Rented (As a Tenant) the House That

question 40

Essay

Katrina, age 58, rented (as a tenant) the house that was her principal residence from January 1, 2019 through December 31, 2020.She purchased the house on January 1, 2021, for $150,000 and continued to occupy it through June 30, 2022.She leased it to a tenant from July 1, 2022, through December 31, 2023.On January 1, 2023, she sells the house for $350,000.She incurs a realtor's commission of $20,000.Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence.

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Definitions:

Correlation Coefficient

A statistical measure that describes the degree to which two variables move in relation to each other.

Strongest Relationship

In statistics and research, the most significant and consistent association between two variables.

Variables

Elements, features, or factors that are liable to vary or change within a study or experiment.

Age

The length of time that a person or thing has existed; a particular stage in someone's life.