8

Question 8 (1 point) Bill, a single taxpayer, sells his principal residence in the current year for $300,000. He bought the residence 20 years ago for $105,000 and has lived in it since. What is the correct tax treatment for this gain? He has a realized and recognized gain of $195,000 He has a realized but no recognized gain He has a realized gain of $195,000 but he may defer recognition of that gain by purchasing a replacement home for at least $300,000. none of the above Question 9 (1 point) Sarah's business property was condemned by the state for highway construction through the location of her business. The state awarded Sarah $250,000 for the property. Sarah's basis in the property was $140,000. Sarah relocated to another