What Is the Maximum Amount of Gain on the Sale

question 29

Multiple Choice

What is the maximum amount of gain on the sale of principal residence a married couple may exclude from gross income?

• A)$0.
• B)$25,000.
• C)$250,000.
• D)$500,000.

---

Definitions:

Percentage Change

A mathematical calculation that describes the degree of change over time, representing the difference as a percentage of the original figure.

Perfectly Inelastic

Describes a situation where the demand or supply for a good or service does not change in response to price changes.

Price Elasticity

An evaluation of how the requested quantity of a merchandise alters in response to price adjustments.

Perfectly Inelastic

A market condition where the quantity demanded does not change as the price changes.