Problem 4-8 Sale of a Personal Residence (LO 4.6) Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2022, for $168,000. He lived in the house for 7 years. The expenses of the sale. are $10,080, and he has made capital improvements of $8,800. Larry's cost basis in his residence is $87,500. On November 30, 2022, Larry purchases and occuples a new residence at a cost of $155,000. 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. $ 61,620 0 X
Problem 4-8 Sale of a Personal Residence (LO 4.6) Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2022, for $168,000. He lived in the house for 7 years. The expenses of the sale. are $10,080, and he has made capital improvements of $8,800. Larry's cost basis in his residence is $87,500. On November 30, 2022, Larry purchases and occuples a new residence at a cost of $155,000. 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. $ 61,620 0 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 4-8
Sale of a Personal Residence (LO 4.6)
Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2022, for $168,000. He lived in the house for 7 years. The expenses of the sale
are $10,080, and he has made capital improvements of $8,800. Larry's cost basis in his residence is $87,500. On November 30, 2022, Larry purchases and occupies a
new residence at a cost of $155,000.
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
$
61,620
0
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