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

question 34

Essay

James and Ellen Connors,who are both 50 years old and married,sell their personal residence on July 25,2014 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 2014.After living in that home for 219 days,the Connors were forced to sell their new home in 2015 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 2014?
b.What is the amount of the gain recognized on the home sale in 2015?

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Definitions:

Experimental Approach

A method of research in psychology and other sciences involving the manipulation of variables to observe the effect on some behavior or mental process.

Manipulating

The process of altering variables in an experimental setting to determine their effects on dependent variables.

Variables

Elements, factors, or conditions that can change and affect the outcomes of experiments and studies in various fields, especially in research and statistics.

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.