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Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $284,400. He lived in the house for 7 years. The expenses of the sale are $19,908, and he has made capital improvements of $8,532. Larry's cost basis in his residence is $164,952. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $355,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence. If an amount is zero, enter "0". a.  Realized gain ______________ b.  Recognized gain ______________ c.  Adjusted basis of new residence ______________

Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $284,400. He lived in the house for 7 years. The expenses of the sale are $19,908, and he has made capital improvements of $8,532. Larry's cost basis in his residence is $164,952. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $355,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence. If an amount is zero, enter "0". a.  Realized gain ______________ b.  Recognized gain ______________ c.  Adjusted basis of new residence ______________

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $284,400. He lived in the house for 7 years. The expenses of the sale are $19,908, and he has made capital improvements of $8,532. Larry's cost basis in his residence is $164,952. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $355,500.

Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence.

If an amount is zero, enter "0".

a.  Realized gain ______________
b.  Recognized gain ______________
c.  Adjusted basis of new residence ______________

 

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