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Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned the house, he installed a swimming pool at a cost of $33,000 and replaced the driveway at a cost of $16,500. On April 28, 2020, Daniel sold the house for $497,000. He paid a realtor commission of $34,300 and legal fees of $1,900 connected with the sale of the house. What is Daniel's recognized gain on the sale of the house? Multiple Choice $28,300 $0 $278,300 $314 500

Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned the house, he installed a swimming pool at a cost of $33,000 and replaced the driveway at a cost of $16,500. On April 28, 2020, Daniel sold the house for $497,000. He paid a realtor commission of $34,300 and legal fees of $1,900 connected with the sale of the house. What is Daniel's recognized gain on the sale of the house? Multiple Choice $28,300 $0 $278,300 $314 500

CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 37P
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Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned the house, he installed a swimming pool at a cost of $33,000 and replaced the driveway at a cost of $16,500. On April 28, 2020, Daniel sold the house for $497,000. He paid a realtor commission of $34,300 and legal fees of $1,900 connected with the sale of the house. What is Daniel's recognized gain on the sale of the house? Multiple Choice $28,300 $278,300 $314 500
Transcribed Image Text:Daniel, who is single, purchased a house on May 15, 1997, for $133,000. During the years he owned the house, he installed a swimming pool at a cost of $33,000 and replaced the driveway at a cost of $16,500. On April 28, 2020, Daniel sold the house for $497,000. He paid a realtor commission of $34,300 and legal fees of $1,900 connected with the sale of the house. What is Daniel's recognized gain on the sale of the house? Multiple Choice $28,300 $278,300 $314 500
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