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Lynn Purchases a House for $52,000

Question 107

Multiple Choice

Lynn purchases a house for $52,000.She converts the property to rental property when the fair market value is $115,000.After deducting depreciation (cost recovery) expense of $1,130,she sells the house for $120,000.What is her recognized gain or loss?


A) $0
B) $6,130
C) $37,630
D) $69,130
E) None of these

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