Calvin and Carolyn Coleman Purchased a Home in San Francisco

question 46

Multiple Choice

Calvin and Carolyn Coleman purchased a home in San Francisco for $375,000 on October 1, 2011. Calvin obtained a job in Portland, Oregon, and on December 1, 2012, the Colemans sold their home in San Francisco for $650,000. How much gain must the Colemans recognize?

• A) $500,000
• B) $291,667
• C) $275,000
• D) $-0-
• E) None of the above

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Definitions:

Bath Sponges

Natural or synthetic sponges used for cleansing the body; natural ones are harvested from the ocean and belong to a simple, multicellular organism group.

Silica

A hard, unreactive, colorless compound that occurs as the mineral quartz and as a principal constituent of sandstone and other rocks.

Calcium Carbonate

A chemical compound used as a dietary supplement or antacid; it's also the main component of limestone.

Spongin

A fibrous protein that makes up the skeleton of many sponges.