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

---

Definitions:

Gradual Emancipation

The historical process or policy of slowly abolishing slavery, typically through laws that phased out the institution over a period of time.

1831 Slave Rebellion

The Nat Turner Rebellion, a slave revolt in Virginia that resulted in the deaths of many, prompting stricter slave laws in the Southern states.

White Southern Families

Refers to families living in the Southern states of the USA, traditionally known for their unique cultural, social, and sometimes economic practices, shaped significantly by the historical context of slavery and segregation.