Aisha is an accountant for a global CPA firm. She is being temporarily transferred from the Raleigh, North Carolina, office to Tokyo. Shewill leave Raleigh on October 7, 2022, and will be out of the country for four years. She sells her personal residence on September 30,2022, for $247,500 (her adjusted basis is $220,000). Upon her return to the United States in 2026, she purchases a new residence inLos Angeles for $236,000, where she will continue working for the same firm.Required:a. What are Aisha's realized and recognized gain or loss?Note: If there is no gain or loss is recognized, select "No gain or loss".b. What is Aisha's basis in the new residence?a.ab. Basis of new residenceAmount< Prev3 of 4 ECNext >CC Aisha is an accountant for a global CPA firm. She is being temporarily transferred from the Raleigh, North Carolina, office to Tokyo. Shewill leave Raleigh on October 7, 2022, and will be out of the country for four years. She sells her personal residence on September 30,2022, for $247,500 (her adjusted basis is $220,000). Upon her return to the United States in 2026, she purchases a new residence inLos Angeles for $236,000, where she will continue working for the same firm.Required:a. What are Aisha's realized and recognized gain or loss?Note: If there is no gain or loss is recognized, select "No gain or loss".b. What is Aisha's basis in the new residence?a.a.b.No gain or lossRealized gainRealized lossRecognized gainAmount48Q Search< Prev 3 of 4Next >G1OO

The profit or rise in value from the sale of an asset that is formally acknowledged and recorded in financial records is known as a recognized gain.Given information,selling price = $247,500adjusted basis= $220,000Purchase price of new residence = $236,000●a.Virginia’s realized gain = Selling Price - Adjusted Basis= $247,500-$220,000= $27,500Hence,Virginia’s realized gain is $27,500According to 121 exclusion, recognized gain is $0.●b.Basis of new residence = Purchase cost = $ 236,000Solution (a)realized gain is $27,500recognized gain is $0.Solution (b)Basis of new residence = $ 236,000