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Ron grew up in the South. He is so proud of his Southern heritage that he wants his daughter to marry a Southerner. Ron's behavior illustrates the principle of:
Recognized Gain
The amount of profit that is realized from the sale of assets that must be reported for tax purposes.
Adjusted Basis
The original cost of a property adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses for tax purposes.
Recognized Gain
The profit earned from the sale of an asset that must be reported for tax purposes.
Adjusted Basis
The original cost of a property adjusted for improvements, depreciation, and certain other factors, used to calculate capital gains or losses.
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