Question

"In June 2017, Bill, a single taxpayer, purchased a home for $187,000. Later that year, he added a new room at a cost of $28,400. In May 2018, he sold the house for $473,000. The home served as his primary residence for the entire time that he owned it. Bill's taxable gain on the sale is __________. a. $0 b. $7,600 c. $257,600 d. $286,000"A. $0B. $7,600 C .$257.600 D. $286,000

Answer 1

$ 257600

Step-by-step explanation:

Price of House = $ 187000

additional room = $ 28, 400

total cost = $ 215400

taxable gain = $ 473000 - $ 215400 = $ 257600