Real Estate Math
An investor buys a property for $450,000, makes $30,000 in improvements, and sells it for $560,000. Ignoring closing costs and commissions, what is the investor's net profit?
A$110,000
B$80,000✓ Correct
C$140,000
D$60,000
Explanation
Total cost basis = $450,000 purchase + $30,000 improvements = $480,000. Net profit = Sale price – Cost basis = $560,000 – $480,000 = $80,000.
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