Matt, Who Is Single, Sells His Principal Residence, Which He

question 270

True/False

Matt, who is single, sells his principal residence, which he has owned and occupied for 5 years, for $435,000. The adjusted basis is $140,000 and the selling expenses are $20,000. Three days after the sale he purchases another residence for $385,000. Matt's recognized gain is $25,000 and his basis for the new residence is $385,000.

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Definitions:

Aphasic

Relating to or affected by aphasia, a condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Lateralized

Refers to the specialization of brain functions in either the left or right hemisphere of the brain.

Left Hemisphere

The left side of the brain, known to predominantly manage tasks related to logic, language, and analytical thinking.

Broca's Aphasia

is a specific type of aphasia characterized by difficulty in producing speech but relatively preserved comprehension, often resulting from damage to Broca's area in the brain.