Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $225,000. He sold the home on January 1, 2021, for $250,600. How

Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $225,000. He sold the home on January 1, 2021, for $250,600. How much gain must Troy recognize on his home sale in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.)

a. Troy rented out the home from January 1, 2007, through November 30, 2008. He lived in the home as his principal residence from December 1, 2008, through the date of sale. Assume accumulated depreciation on the home at the time of sale was $15,800.

b. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2016. He rented out the home from January 1, 2017, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $5,450.

c. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2018. He rented out the home from January 1, 2019, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0. (Round your intermediate calculations and the final answer to the nearest whole dollar amount.)

d. Troy rented out the home from January 1, 2007, through December 31, 2016. He lived in the home as his principal residence from January 1, 2017, through December 31, 2017. He rented out the home from January 1, 2018, through December 31, 2018, and lived in the home as his principal residence from January 1, 2019, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioural Public Finance Individuals, Society, And The State

Authors: M Mustafa Erdogdu

1st Edition

0367631202, 9780367631208

More Books

Students also viewed these Accounting questions

Question

3. How does the author describe the method of data collection?

Answered: 1 week ago

Question

What is learning?

Answered: 1 week ago