Bob Owns a Rental Property That He Bought Several Years

question 90

Multiple Choice

Bob owns a rental property that he bought several years ago for $260,000. He has taken depreciation on the house of $35,000 since buying it. He sells it in 2014 for $290,000. His selling expenses were $12,000 for the year. What was Bob's realized gain on the sale?

• A)$18,000
• B)$53,000
• C)$65,000
• D)$77,000
• E)None of the above

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Definitions:

Time-Driven Activity-Based Costing

A costing method that estimates the costs of resources used in business activities, based on the time those activities take and the rate at which resources are consumed.

Customer Service Department

A functional unit within a business that handles customer inquiries, complaints, and facilitates after-sales support.

Capacity Analysis

The evaluation of a business's ability to meet current and future production demands with its existing resources.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products based on the estimated time activities take and the cost of performing those activities.