Use the Following Data to Determine the Sales Price of Toby's

question 79

Essay

Use the following data to determine the sales price of Toby's principal residence and the realized gain. He is not married. The sale of the old residence qualifies for the § 121 exclusion. $$\begin{array} { l r } \text { Selling expenses } & \$ 45,000 \\\text { Recognized gain } & 180,000 \\\text { Cost of new residence } & 760,000 \\\text { Adjusted basis of old residence } & 225,000 \\\S 121 \text { exclusion } & 250,000\end{array}$$

---

Definitions:

Temporal Lobes

Sections of the brain located on both sides of the head above the ears, involved in processing auditory information and memory.

Parietal Lobes

Regions of the brain located behind the frontal lobes that are involved in processing sensory information from the body and in spatial navigation.

Cortex

The outermost layer of the brain, associated with high-level processes such as consciousness, thought, emotion, reasoning, language, and memory.

Electrical Stimulation

The use of electrical impulses to induce muscle contraction, stimulate nerves, or influence brain activity, often used in medical treatment and physical therapy.