James and Ellen Connors,who Are Both 50 Years Old and Married,sell

question 43

Essay

James and Ellen Connors,who are both 50 years old and married,sell their personal residence on July 25,2017,for $950,000.They have lived in the home for 20 years.The basis of the home is $350,000.They purchased a new home for $1,000,000 in August 2017.After living in that home for 219 days,the Connors were forced to sell their new home in 2018 for $1,300,000 and move to another climate due to Ellen's severe health problems.
a.What is the amount of gain recognized on the home sale in 2017?
b.What is the amount of the gain recognized on the home sale in 2018?

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Definitions:

Long-term Debt

Borrowings and financial obligations that are due for repayment beyond the period of one year.

Current Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its current assets by comparing its net sales to its current assets.

Accounts Receivable

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Inventory Management

The supervision of non-capitalized assets (inventory) and stock items, including ordering, storing, and utilizing a company's inventory.