Janice 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, 2017. 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

Janice's adjusted basis = $370,000

Janice's amount realized = $659,000

Explanation:

Janice's adjusted basis = $395,000 (purchase price) - $70,000 (depreciation) + $45,000 (repairs) = $370,000

Janice's amount realized = $500,000 (cash) + $194,000 (mortgage) - $34,700 (realtor fee) - $300 (advertising expenses) = $659,000

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total