William and Kate Married in 2014 and Purchased a New

question 18

Multiple Choice

William and Kate married in 2014 and purchased a new home together.Each had owned and lived in separate residences for the past 5 years.William's adjusted basis in his old residence was $200,000; Kate's adjusted basis in her old residence was $120,000.In late 2014,William sells his residence for $500,000 while Kate sells her residence for $190,000.What is the total gain to be excluded from these transactions in 2014?

• A)$0
• B)$250,000
• C)$320,000
• D)$370,000

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Definitions:

Microscopic Plates

Tiny, often mineralized structures observable under a microscope, which can be part of the skeletal system of some organisms.

Holothuroidea

A class of marine invertebrates within the phylum Echinodermata, commonly known as sea cucumbers.

Endoskeleton

An internal support structure of an organism, typical of vertebrates, providing physical support and protection for the body.

Urochordates

A subphylum of chordates; includes the tunicates.