On November 1, 2014, Jamie (Who Is Single) Purchased and Moved

question 55

Multiple Choice

On November 1, 2014, Jamie (who is single) purchased and moved into her principal residence. In early 2015, Jamie was laid off from her job. On February 1, 2015, 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 2015?

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

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Definitions:

Expected Growth Rate

The anticipated rate at which a company, asset, or economy is expected to grow in the future.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its profits or reserves.

Liquidation Value

Net amount that could be realized by selling the assets of a firm after paying the debt.