During 2010,Ted and Judy,a Married Couple,decided to Sell Their Residence,which

question 67

Multiple Choice

During 2010,Ted and Judy,a married couple,decided to sell their residence,which had a basis of $225,000.They had owned and occupied the residence for 16 years.To make it more attractive to prospective buyers,they had the outside painted in April at a cost of $10,000 and paid for the work immediately.They sold the house in May for $795,000.Broker's commissions and other selling expenses amounted to $45,000.Since they both are age 68,they decide to rent an apartment.They purchase an annuity with the net proceeds from the sale.What is the realized gain?

• A)$750,000.
• B)$525,000.
• C)$515,000.
• D)$0.
• E)None of the above.

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Definitions:

Negative Emotions

Feelings that are generally considered to be unpleasant or disadvantageous, such as sadness, anger, or fear.

High Road

Taking the ethical or moral course of action, even if it is difficult or less advantageous.

Emotional Responses

Emotional responses are the feelings and reactions that arise in response to stimuli or situations, influenced by individual's mood, temperament, and experiences.

Two-Factor Theory

A theory that proposes emotions are based on physiological arousal and the cognitive interpretation of that arousal.