During 2014,Howard and Mabel,a Married Couple,decided to Sell Their Residence

question 35

Multiple Choice

During 2014,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.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)$191,000
• E)None of these

---

Definitions:

Encopresis

A condition in children characterized by the involuntary passage of feces, often associated with constipation and emotional issues.

Conduct Disorder

A severe psychological disorder in children and adolescents characterized by a long-term pattern of disregard for other people's rights, norms, and societal rules.

ADHD

Attention Deficit Hyperactivity Disorder, a mental health disorder characterized by a continuous pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.

Psychodynamic Therapy

A therapeutic approach that focuses on unconscious processes as they are manifested in a person's present behavior.