Steve and Stephanie Pratt purchased a home in Spokane, Washington for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until October 1 of year 1 when they sold the home for $610,000. Assume the Pratts sell the home because Stephanie's employer transfers her to an office in Utah. How much gain will the Pratts recognize on their home sale?
Steve and Stephanie Pratt purchased a home in Spokane, Washington for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until October 1 of year 1 when they sold the home for $610,000. Assume the Pratts sell the home because Stephanie's employer transfers her to an office in Utah. How much gain will the Pratts recognize on their home sale?
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 41P
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Provide correct answer the accounting question
Transcribed Image Text:Steve and Stephanie Pratt purchased a home in Spokane,
Washington for $400,000. They moved into the home on February 1
of year 1. They lived in the home as their primary residence until
October 1 of year 1 when they sold the home for $610,000. Assume
the Pratts sell the home because Stephanie's employer transfers her
to an office in Utah. How much gain will the Pratts recognize on
their home sale?
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