On November 1, Year 1, Jamie (Who Is Single) Purchased

question 67

Multiple Choice

On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $35,000 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2?

• A) $0.
• B) $3,125.
• C) $31,250.
• D) $35,000.

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Definitions:

Liver

A large vital organ in vertebrates involved in numerous metabolic processes, including detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Adrenal Medulla

Inner portion of adrenal gland; secretes epinephrine and norepinephrine.

Epinephrine

A hormone also known as adrenaline, produced mainly by the adrenal glands, playing a central role in the body's 'fight-or-flight' response to stress, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and potassium levels in the body.