Steve pratt who is single purchased a home in spokane, Ask an Expert

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Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $705,000.

A. What amount of gain will Steve be required to recognize on the sale of the home?
Recognized gain $

B. Assume the original facts, except that the home is Steve's vacation home and he vacations there four months each year. Steve does not ever rent the home to others. What gain must Steve recognize on the home sale?
Recognized gain $

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9976600

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