During 2012, Howard and Mabel, a Married Couple, Decided to Sell

question 163

Multiple Choice

During 2012, Howard and Mabel, a married couple, decided to sell their residence.The residence has a basis of $162,000 and has been owned and occupied by them for 11 years. To make it more attractive to prospective buyers, they had it painted in April at a cost of $5,000.The house was sold in May for $395,000 with broker's commissions and other selling expenses being $24,000. They purchased a new residence in June for $400,000. What is the adjusted basis of the new residence?

• A)$0.
• B)$141,000.
• C)$162,000.
• D)$167,000.
• E)None of the above.

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