Charlotte Purchases a Residence for $105,000 on April 13, 2006

question 37

Short Answer

Charlotte purchases a residence for $105,000 on April 13, 2006. On July 1, 2012, she marries Howard and they use Charlotte's house as their principal residence. On May 12, 2014, they sell their home for $390,000, incurring $20,000 of selling expenses and purchase another residence costing $350,000. What is their realized and recognized gain?

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