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

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Definitions:

SES

Social Economic Status; a measure of an individual's or group's economic and sociological standing, often based on income, education, and occupation.

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Significant Correlation

A statistics term indicating a strong association between two variables, suggesting that when one changes, the other is likely to change in a predictable way.

Phenotype

The overt characteristics and behaviors of an organism.