van owned a house for which he paid $320,000. He added a new room at a cost of $10,000. He later sold the hous

Question

van owned a house for which he paid $320,000. He added a new room at a cost of $10,000. He later sold the house for $375,000 and paid a $25,000 sales commission. What is Ivan's gain or loss?
 $20,000 gain.
 $20,000 loss.
 $30,000 gain.
 $55,000 gain.

GPT-5 mini · Answer

Ivan has a $20,000 gain.

Calculation:
- Adjusted basis = purchase price + improvement = $320,000 + $10,000 = $330,000
- Amount realized = sale price - commission = $375,000 - $25,000 = $350,000
- Gain = amount realized - adjusted basis = $350,000 - $330,000 = $20,000

van owned a house for which he paid $320,000. He added a new room at a cost of $10,000. He later sold the house for $375,000 and paid a $25,000 sales commission. What is Ivan's gain or loss?
$20,000 gain.
$20,000 loss.
$30,000 gain.
$55,000 gain.

All Answers 1

Submit Your Answer

van owned a house for which he paid $320,000. He added a new room at a cost of $10,000. He later sold the house for $375,000 and paid a $25,000 sales commission. What is Ivan's gain or loss? $20,000 gain. $20,000 loss. $30,000 gain. $55,000 gain.

All Answers 1

Submit Your Answer

van owned a house for which he paid $320,000. He added a new room at a cost of $10,000. He later sold the house for $375,000 and paid a $25,000 sales commission. What is Ivan's gain or loss?
$20,000 gain.
$20,000 loss.
$30,000 gain.
$55,000 gain.