Alicia buys a beach house for 425000 which she uses as her, Ask an Expert

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Alicia buys a beach house for $425,000 which she uses as her personal vacation home. She builds an additional room on the house for $45,000. She sells the property for $510,000 and pays $30,000 in commissions and $4,000 in legal fees in connection with the sale. What is the recognized gain or loss on the sale of the house?

a. $0.

b. $6,000.

c. $30,000.

d. $40,000.

e. None of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M962659

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