Multiple Choice
Jamie bought her house in 2008 for $395,000.Since then,she has deducted $70,000 in depreciation associated with her home office and has spent $45,000 replacing all the old pipes and plumbing.She sells the house on July 1,2015.Her realtor charged $34,700 in commissions.Prior to listing the house with the realtor,she spent $300 advertising in the local newspaper.Sammy buys the house for $500,000 in cash,assumes her mortgage of $194,000,and pays property taxes of $4,200 for the entire year on December 1,2015.What is Jamie's adjusted basis at the date of the sale and the amount realized?
A) $370,000 adjusted basis;$661,400 amount realized.
B) $370,000 adjusted basis;$661,100 amount realized.
C) $370,000 adjusted basis;$665,200 amount realized.
D) $325,000 adjusted basis;$663,200 amount realized.
E) $325,000 adjusted basis;$694,000 amount realized.
Correct Answer:

Verified
Correct Answer:
Verified
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