Tanner,who Is Single,purchased a House on April 15,2000 for $215,000

question 22

Multiple Choice

Tanner,who is single,purchased a house on April 15,2000 for $215,000.During the time Tanner owned the house,he installed a swimming pool at a cost of $21,000 and replaced the deck at a cost of $18,000.On August 5,2014,Tanner sold the house for $570,000.Tanner paid a sales commission of $30,000 and legal fees of $800 connected with the sale of the house.What is Tanner's recognized gain on the sale of the house?

• A) $0.
• B) $35,200.
• C) $250,000.
• D) $285,200.

---

Definitions:

Preference Dividends

Dividends that are paid to holders of preferred shares, typically at a fixed rate, before any dividends are paid to common shareholders.

EPS

Earnings Per Share, a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Directors' Declaration

A statement by the company's directors asserting the accuracy of the financial statements.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, indicating whether the statements are free from material misstatement and accurately represent the company's financial position.