Charlotte Purchases a Residence for $105,000 on April 13, 2008 $\begin{array}{llcc} \text { Realized } & \text { Recognized} \\\end{array}$

question 28

Short Answer

Charlotte purchases a residence for $105,000 on April 13, 2008. On July 1, 2016, she marries Howard and they use Charlotte's house as their principal residence. On May 12, 2018, they sell their home for $390,000, incurring $20,000 of selling expenses and purchase another residence costing $350,000. What is their realized and recognized gain?
?
$\begin{array}{llcc} \text { Realized } & \text { Recognized} \\\end{array}$
A) $\$ 265,000 \quad \$-0-$
B) $\$ 265,000 \quad \$ 15,000$
C) $\$ 285,000 \quad \$ 65,000$
D) $\$ 265,000 \quad \$45,000$
E) $\$ 285,000 \quad \$-0-$

• A) \( \$ 265,000 \quad \$-0- \)
• B) \( \$ 265,000 \quad \$ 15,000 \)
• C) \( \$ 285,000 \quad \$ 65,000 \)
• D) \( \$ 265,000 \quad \$45,000 \)
• E) \( \$ 285,000 \quad \$-0- \)

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Definitions:

Z

Often represents impedance in electrical circuits, a measure of opposition to AC including both resistance and reactance.

RC Parallel Circuit

A circuit configuration consisting of a resistor (R) and a capacitor (C) connected in parallel with each other across a power supply.

R

Commonly used to symbolize resistance in electrical equations and diagrams, measured in ohms (Ω).

RC Parallel Circuit

An electrical circuit composed of resistors and capacitors arranged in parallel, affecting current flow and charge distribution differently from series configurations.