Real Estate Math
An Idaho investor purchases a property for $475,000 and makes improvements costing $85,000. The property is later sold for $620,000. The cost basis is purchase price plus improvements. What is the gain on sale?
A$55,000
B$60,000✓ Correct
C$65,000
D$70,000
Explanation
Cost basis = $475,000 + $85,000 = $560,000. Gain = Sale Price - Cost Basis = $620,000 - $560,000 = $60,000.
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