Jamie Bought Her House in 2007 for $395,000

question 144

Multiple Choice

Jamie bought her house in 2007 for $395,000. Since then, she has deducted $70,000 in depreciation associated with her home office and has spent $45,000 replacing all the old pipes and plumbing. She sells the house on July 1, 2012. Her realtor charged $34,700 in commissions. Prior to listing the house with the realtor, she spent $300 advertising in the local newspaper. Sammy buys the house for $500,000 in cash, assumes her mortgage of $194,000, and pays property taxes of $4,200 for the entire year on December 1, 2012. What is Jamie's adjusted basis at the date of the sale and the amount realized?

• A)$370,000 adjusted basis; $661,400 amount realized.
• B)$370,000 adjusted basis; $661,100 amount realized.
• C)$370,000 adjusted basis; $665,200 amount realized.
• D)$325,000 adjusted basis; $663,200 amount realized.
• E)$325,000 adjusted basis; $694,000 amount realized.

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Definitions:

Phenomenological Perspective

An approach in psychology focusing on the subjective experience of individuals and how they perceive and interpret their world.

Construals

Psychological terms for an individual's unique interpretation or perception of the world, influencing their thoughts, feelings, and actions.

Family History

The recorded health, genetic, and social history of a person's family, used to assess risks or patterns that may affect an individual.

Positive Psychology

A branch of psychology focused on the study of positive human functioning, aiming to discover and promote factors that allow individuals and communities to thrive.