Cameron (Single) Purchased and Moved into His Principal Residence on July

question 51

Multiple Choice

Cameron (single) purchased and moved into his principal residence on July 1,2013.On June 1,2014,Cameron lost his job.Because he couldn't afford the payments on his new home,he sold it on July 1,2014 in order to move into some apartments across the street.On the sale of his principal residence,Cameron realized a $50,000 gain.How much of the gain is Cameron allowed to exclude from his 2014 gross income?

• A)$0
• B)$2,500
• C)$25,000
• D)$50,000

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Definitions:

Psychological

Pertaining to the mind or mental processes and how they affect behaviors, feelings, and thoughts.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense.

Perquisites

Additional benefits or privileges granted to employees on top of their regular salary, often to improve job satisfaction and loyalty.

Straight Salary Plan

A compensation method where employees are paid a fixed regular wage regardless of sales or performance.