Larry Owned and Lived in a Home for Five Years

question 53

Multiple Choice

Larry owned and lived in a home for five years before marrying Darlene.Larry and Darlene lived in the home for one year before selling it at a $600,000 gain.Larry was the sole owner of the residence until it was sold.How much of the gain may Larry and Darlene exclude?

• A)$0.
• B)$250,000.
• C)$500,000.
• D)$600,000.

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Definitions:

Absentmindedness

A state of preoccupation where one is so lost in thought that they become unaware of their immediate surroundings or actions.

Shallow Encoding

The process of encoding memory based on superficial features like the sound or appearance of words rather than their meanings.

Proactive Interference

The difficulty in learning new information because of the interference of existing similar knowledge or memories.

Retroactive Interference

A phenomenon where newly acquired information interferes with the retention of previously learned information.