P, a Single Individual, Purchased a New Home on April

question 17

Multiple Choice

P, a single individual, purchased a new home on April 1, 20X1 for $375,000.On July 1, 20X2, P sold the property for $490,000, so she could take a new job 300 miles from her old home.The new job involved a promotion.How much gain must P recognize?

• A)$115,000
• B)$71,875
• C)$44,125
• D)$0

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Definitions:

Mesoderm

The middle layer of an embryo in early development, giving rise to muscles, bones, and the circulatory system.

Muscle

Tissues in the body that can contract, allowing movement of body parts and organs.

Notochord

The notochord is a flexible rod-like structure that forms the main axis of the embryo in all chordates, providing support and defining the primitive axis of the embryo.

Mesodermal Tissue

The middle layer of embryonic tissue that develops into muscle, bone, and the circulatory system among others.