Real Estate Math
If a homeowner's original cost basis is $200,000, they add $30,000 in improvements, and then sell for $310,000 after 8 years, what is the capital gain?
A$80,000✓ Correct
B$110,000
C$130,000
D$310,000
Explanation
Adjusted basis = $200,000 + $30,000 = $230,000. Capital gain = $310,000 − $230,000 = $80,000.
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