During 2016,Ted and Judy,a Married Couple,decided to Sell Their Residence,which

question 22

Multiple Choice

During 2016,Ted and Judy,a married couple,decided to sell their residence,which had a basis of $300,000.They had owned and occupied the residence for 20 years.To make it more attractive to prospective buyers,they had the outside painted in April at a cost of $6,000 and paid for the work immediately.They sold the house in May for $880,000.Broker's commissions and other selling expenses amounted to $53,000.Since they both are age 68,they decide to rent an apartment.They purchase an annuity with the net proceeds from the sale.What is the recognized gain?

• A)$0
• B)$17,000
• C)$27,000
• D)$527,000
• E)None of the above

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