Nicki Is Single and 46 Years Old

question 45

Essay

Nicki is single and 46 years old.She sells her principal residence (adjusted basis $200,000)that she purchased ten years ago for $435,000.
a.What is the amount of Nicki's recognized gain on the sale?
b.Assume instead that Nicki sells the residence for $485,000.What is the amount of Nicki's recognized gain on the sale?
c.Assume instead that Nicki has been married to Mike for the entire time they have owned and lived in the home.If they sell the home for $485,000,what is the amount of their recognized gain on the sale?

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Definitions:

Expanding Markets

The process of entering new geographic or demographic market segments to increase customer base and achieve higher sales.

Moderate Market Share

Refers to a company holding a fair but not dominating percentage of sales in its industry.

Dog

A domesticated carnivorous mammal, Canis familiaris, known for its loyalty and companionship with humans.

Low-Growth Market

A market that experiences minimal increases in consumer demand or revenue potential over time.