Kelly, Who Is Single, Sells Her Principal Residence, Which She

question 276

True/False

Kelly, who is single, sells her principal residence, which she has owned and occupied for 8 years, for $375,000. The adjusted basis is $64,000 and selling expenses are $22,000. She purchases another principal residence three months later for $200,000. Her recognized gain is $39,000 and her basis for the new principal residence is $200,000.

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Definitions:

Calcitonin

A hormone produced by the thyroid gland that helps regulate calcium levels in the blood by inhibiting osteoclast activity.

Broken Bone

A fracture or disruption in the continuity of a bone, often caused by trauma, stress, or disease.

Internal Callus

The internal mass of fibrous tissue and cartilage formed between the ends of a fractured bone during the healing process.

Marrow Cavity

The central, inner part in bones where bone marrow is stored, producing blood cells.