Sue,a Single Taxpayer,purchased a Principal Residence in 2001 for $415,000

question 22

Multiple Choice

Sue,a single taxpayer,purchased a principal residence in 2001 for $415,000.In 2005,she paid $18,000 to add a sunroom.This year,Sue sold the residence for $686,000.Her selling expenses were $5,000.How much gain must Sue recognize on the sale?

• A)$0
• B)$3,000
• C)$16,000
• D)$25,000