Josh Purchases a Personal Residence for $278,000 but Subsequently Converts

question 49

Multiple Choice

Josh purchases a personal residence for $278,000 but subsequently converts the property to rental property when its FMV is $275,000.Assume depreciation of $65,000 has been deducted after conversion to rental use.If Josh sells the property for $280,000,his gain or loss will be

• A)$2,000 gain.
• B)$5,000 gain.
• C)$67,000 gain.
• D)$70,000 gain.

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Definitions:

Clammy Skin

A condition where the skin feels cold and wet, often as a result of illness, anxiety, or the environment.

Dilated Pupils

A condition where the pupils of the eyes become larger or wider than normal, which can be a reaction to various conditions, light levels, or substances.

Heatstroke

A severe heat-related illness characterized by an elevated body temperature, potentially leading to death if not treated promptly.

Pupils

The opening in the center of the iris of the eye that allows light to strike the retina, adjusting in size to regulate the amount of light entering the eye.