This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income?

a. $550,000
b. $300,000
c. $250,000
d. $50,000
e. None

a. 550,000

Explanation:

The gain on the asset is calculated by the sales proceeds minus the original cost of the asset.

In this question the home' initial cost is $200,000 and it is sold on $750,000. In absence of any unusual or hardship circumstances, the direct gains is $550,000 ( $750,000 - $200,000) as all the closing costs are paid by the buyer, so, Barney ans Betty should include the whole gain of $550,000 in the gross income.

The correct answer is option (a) $550,000

Explanation:

Given Data;

Sales price =$750,000

Cost price =$200,000

The profit is calculated as;

Profit = sales price - cost price

          = $750,000 - $200,000

          =$550,000

Assuming no unusual or hardship circumstances apply, all the profit will be included in the gross income.

Therefore, $550,000 is included in the gross income.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer; break-even analysis;