Shantel Owned and Lived in a Home for Five Years

question 105

Multiple Choice

Shantel owned and lived in a home for five years before marrying Daron.Shantel and Daron lived in the home for two years before selling it at a $700,000 gain.Shantel was the sole owner of the residence until it was sold.How much of the gain may Shantel and Daron exclude?

• A)$0.
• B)$250,000.
• C)$500,000.
• D)$700,000.

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Definitions:

Revenue And Spending Variance

The difference between the actual revenue and spending versus the budgeted amounts, indicating whether a business is over or under its budgeted figures.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenues.

Activity Level

Refers to the volume of production or the quantity of operations that influences costs in manufacturing or service delivery.

Net Operating Income

Profit generated from a company's core business operations, excluding deductions of interest and taxes.