Alicia Buys a Beach House for $425,000 Which She Uses

question 47

Multiple Choice

Alicia buys a beach house for $425,000 which she uses as her personal vacation home.She builds an additional room on the house for $45,000.She sells the property for $510,000 and pays $30,000 in commissions and $4,000 in legal fees in connection with the sale.What is the recognized gain or loss on the sale of the house?

• A)$0.
• B)$6,000.
• C)$30,000.
• D)$40,000.
• E)None of the above.

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Definitions:

Frontal Systems Dysfunction

A neurological disorder affecting the frontal lobes of the brain, leading to issues with emotional control, decision-making, and executive functions.

Methamphetamine

A powerful, highly addictive stimulant that affects the central nervous system, known for its rapid onset of euphoria but associated with severe health risks.

Sensation Seeking

A trait describing the need for varied, novel, and complex sensations and experiences, as well as the willingness to take physical and social risks for such experiences.

Apathy

A state of indifference where an individual shows little to no interest, enthusiasm, or concern towards aspects of life.