Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2020, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2020, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2020. The closing statement showed the following disbursements: Real estate agent's commission $21,780 Appraisal fee 600 Exterminator's certificate 300 Recording fees 800 Mortgage to First Bank 305,000 Cash to seller 34,520 Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2020, Wesley purchases another residence for $325,000. If an amount is zero, enter "0". a. Calculate Wesley's recognized gain on the sale. $fill in the blank 89a3d703a067018_1 b. What is Wesley's adjusted basis for the new residence? $fill in the blank ab7b45f42fbcf8e_1 c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?
Problem 13-85 (LO. 8)
Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2020, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2020, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2020. The closing statement showed the following disbursements:
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Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2020, Wesley purchases another residence for $325,000.
If an amount is zero, enter "0".
a. Calculate Wesley's recognized gain on the sale.
$fill in the blank 89a3d703a067018_1
b. What is Wesley's adjusted basis for the new residence?
$fill in the blank ab7b45f42fbcf8e_1
c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?
Wesley's recognized gain is $fill in the blank a28d97faefcf03b_1, and his adjusted basis for the new residence is $fill in the blank a28d97faefcf03b_2.
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