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.

---

Definitions:

MEG

Magnetoencephalography, a non-invasive imaging technique used to measure the magnetic fields produced by neuronal activity in the brain.

Magnetic Fields

Invisible forces that exert a magnetic influence on moving electric charges, affecting the behavior of charged particles in the vicinity.

Electrical Signals

The method by which neurons communicate and transmit information through action potentials and synapses in the nervous system.

Radiochemicals

Radiochemicals are chemical compounds that are radioactive, often used in medical diagnostics, research, and nuclear industries.