Use the Following Data to Determine the Sales Price of Etta's

question 115

Essay

Use the following data to determine the sales price of Etta's principal residence and the realized gain.She is not married.The sale of the old residence qualifies for the § 121 exclusion.
$\begin{array}{ll}\text { Selling expenses } & \$ 45,000 \\\text { Recognized gain } & 180,000 \\\text { Cost of new residence } & 760,000 \\\text { Adjusted basis of old residence } & 225,000 \\\S 121 \text { exclusion } & 250,000\end{array}$

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Definitions:

Existence

The state or fact of living or being present.

Relatedness

A sense of connection or belonging to others, often considered a fundamental human need influencing motivation and mental health.

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The process of increasing in size, amount, or importance.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.