Tony and Faith Sell Their Home for $495,000,incurring Selling Expenses

question 54

Multiple Choice

Tony and Faith sell their home for $495,000,incurring selling expenses of $25,000.They purchased the residence for $85,000 and made capital improvements totaling $20,000 during the 20 years they lived there.What is their realized gain and recognized gain on the sale?
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Realized Recognized

• A)$365,000 $-0-
• B)$365,000 $115,000
• C)$385,000 $135,000
• D)$385,000 $-0-
• E)$390,000 $-0-

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Definitions:

Intimate Space

The physical area immediately surrounding an individual, into which intrusion can feel uncomfortable or threatening unless there's a close relationship.

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A communication, typically a phone call or in-person visit, made by a sales representative to a potential or existing customer for selling purposes.

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An individual who sells goods or services on behalf of a company, often acting as the primary point of contact between the business and its customers.

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