Janice Bought Her House in 2009 for $395,000

Multiple Choice

Janice bought her house in 2009 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, 2018. Her realtor charged $34,700 in commissions. Prior to listing the house with the realtor, she spent $300 advertising in the local newspaper. Don buys the house for $500,000 in cash and assumes her mortgage of $194,000. What is Janice'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? $659,000 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.