If an amount is zero, enter "0". Round any division to three decimal places. Realized Recognized Gain Gain a. Aretha is single and acquired the house on September 15, 2012. b. Assume the same facts as in part a, except that Aretha sells the house for $388,500 and pays commissions of $29,800 on the sale. c. Aretha is single and acquired the house on September 1, 2019. She sells the house because her company transfers her to Phoenix. d. Assume the same facts as in part c, except that Aretha moves to Phoenix to enter medical school.
If an amount is zero, enter "0". Round any division to three decimal places. Realized Recognized Gain Gain a. Aretha is single and acquired the house on September 15, 2012. b. Assume the same facts as in part a, except that Aretha sells the house for $388,500 and pays commissions of $29,800 on the sale. c. Aretha is single and acquired the house on September 1, 2019. She sells the house because her company transfers her to Phoenix. d. Assume the same facts as in part c, except that Aretha moves to Phoenix to enter medical school.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sale of a Principal Residence (LO. 9)
Aretha sells her house on June 9, 2020, for $235,700 and pays commissions of $9,500 on the sale. She had purchased the house for $61,800 and made capital improvements costing $15,400.
Determine Aretha's realized and recognized gains in each of the following cases.
If an amount is zero, enter "0". Round any division to three decimal places.
Realized
Recognized
Gain
Gain
а.
Aretha is single and acquired the house on September 15, 2012.
$
b.
Assume the same facts as in part a, except that Aretha sells the house for
$388,500 and pays commissions of $29,800 on the sale.
C.
Aretha is single and acquired the house on September 1, 2019. She sells the house
because her company transfers her to Phoenix.
d.
Assume the same facts as in part c, except that Aretha moves to Phoenix to enter
medical school.
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